Owning and operating a bed and breakfast can be immensely rewarding, especially if you are in a great location and can get high residence numbers. On the other hand, it is also very challenging and requires a great deal of work if you want to achieve success. You’ll need to keep a very close eye on the quality you offer, including the condition of rooms, the facilities, the food, and the value for money. The most successful B&B establishments get all these elements right and deliver an experience that visitors want to repeat time and again.
When considering running a bed and breakfast you need to consider how you will finance the business, whether you’re planning on buying one that is already established or have a more ambitious project to transform a property. Getting finance for this kind of business can be easier than a standard property purchase because of the added security but you will need a larger deposit. The most attractive applications typically include deposits of 30% or more.
A B&B mortgage will typically have terms ranging from 15 – 20 years, slightly shorter than the longest ones for purchasing a residential property. The short term is because lenders expect that buyers will make profits and be able to pay higher premiums. This also offers more freedom for re-mortgaging in the future, meaning property owners aren’t tied in for as long as they typically would be.
A fantastic feature of a bed and breakfast mortgage is that they can include stipulations for seasonal payments. This means that you can make bigger repayments in peak months where you have more business and higher revenue. In the off-season the monthly amount you need to repay can fall to account for the lower income. This makes the policy far more flexible to suit your needs.
Finding the right B&B mortgage can be a challenge but there is help available when you need it. We have extensive experience in the field and act as a broker, helping clients to find the best funding. You can rely on us to help you, particularly with the fact that we won’t charge you a brokerage fee until you find the policy you want and sign up. You can rest assured that we always go the extra mile to support our clients.