B&B Refinance from Residential to Commercial Mortgage

The Old Mill, Bere Regis

David & Lorna have, very successfully, owned and operated, The Old Mill B&B in the lovely Dorset village of Bere Regis. They originally purchased the property as a residential property and the B&B evolved over time, however, over the last couple of years they became aware that instead of a residential mortgage they should have had a commercial mortgage as they were trading as a B&B.

David & Lorna spent some time looking at their options and eventually decided to engage Stewart Hindley & Partners to look at the finance options available to them and to arrange the refinance. Luckily the business had a good level of turnover and the net profit was sufficient to support the required debt service cover. This is not always the case when people trade on a residential mortgage and the consequences can be serious. If you would like to know more about this check out our article on “Are you Risking your B&B

The location of The Old Mill was also a bonus in that it is close to the Jurassic Coast, Monkey World and The Tank Museum which are all popular Dorset visitor attractions.

Needless to say we have successfully remortgaged the property and have given David & Lorna the security of knowing that they are not breaching any mortgage covenants and have the best possible deal available to them.

Check out the website for The Old Mill

What David & Lorna say about working with Stewart Hindley & Partners….

With our circumstances having changed since we originally purchased our property it was clear that we would have to make the transition from a residential mortgage to a commercial mortgage.

We approached a few brokers to undertake the job of finding us a suitable lender that would work with us and our B&B business. In the end it was a simple decision to instruct Stewart Hindley & Partners.

They took on the task of compiling sound evidence that our business was a profitable and sound concern before approaching potential lenders.

This was all completed in a timely and uncomplicated fashion and would highly recommend Stewart Hindley & Partners to anyone thinking of financing a B&B operation either as a start up or a going concern.

 Many Thanks indeed

 David & Lorna Ventham – The Old Mill

Isles of Scilly Bed & Breakfast

The dream – A Bed and Breakfast on The Isles of Scilly – it came true!

Kelly and Kevin had a dream of owning their own bed and breakfast in the Isle of Scilly and weren’t sure it would be a possibility. They knew the town of St Mary’s well and when they found their perfect property there they couldn’t believe their luck.  They contacted us to see what they could borrow and if it was possible for them to sell up on mainland UK and move over.  Well, they have done it with the help of us here at Stewart Hindley & Partners!

The first step was for Kelly to send us the property details and accounts for the business they wanted to buy and we then helped them by assessing how fundable the deal would be.

Crebinick House was a traditional Grade II listed building which had been extended at the rear to provide a large 9 bedrooms property consisting of 6 spacious guest rooms and 3 bedroomed owners’ accommodation.  The guest house was well established and had a number of returning guests as well as excellent online reviews.

The only downside was that there had not been a focus on trade for a couple of years due to the current owners’ ill health and pending retirement. This meant the deal would be reliant on projections which always makes the deal a bit more of a challenge.  Lenders tend to look at projection led deals as more high risk and are slightly more reluctant to lend on them.

Because Stewart Hindley & Partners specialise in the hospitality sector we understand what are standard and achievable costs for a bed and breakfast or guest house.  We are able to provide lenders with realistic projections which show that the business is capable of building the trade and, importantly, can cover the debt service going forward.

We submitted the deal and after a bank meeting and acceptable valuation report the deal was offered.  Kelly and Kevin completed their purchase and started living the dream in February 2019.

There is a lot going on in the Isles of Scilly so if you are visiting why not stay at Crebinick House where you are assured of a warm welcome.

https://www.crebinick.co.uk

What Kelly and Kevin say about us…..

We fell in love with Crebinick at first sight and desperately wanted to make it our home and business.  After a depressing conversation with a business manager at a local bank, due to the previous few years’ deliberately low trading figures, it seemed we would need professional help to persuade a lender of the potential of the business in order to get our dream off the ground.  Stewart Hindley had a great reputation for assisting in situations such as ours and from our first conversation with Chris we were filled with hope that a lender might believe in Crebinick as we did.  Chris’ experience ensured that he approached the right lender for us with the right information and ultimately we were successful in getting the finance we needed.  We don’t think we could have managed it without Stewart Hindley or, at least, certainly not in time to begin the 2019 season as we have done!  Thanks for all your help.  

Kelly & Kevin

Crebinick

North Devon Bed and Breakfast

Vanessa & Phillip Moyle had previously let out just one room of their house in Salcombe in South Devon and after some time decided that they wanted to use their love of meeting people and their hospitality skills to develop a business in the popular North Devon coastal village of Lynton.

They spent some time looking for the right property and eventually settled on a 4* guest house, Rockvale House.  Rockvale House had been owned for a number of years by the same people and was traded very much to suit their personal requirements.  This presented a great opportunity for Vanessa & Phillip to purchase a well-established 8 bedroomed Guest House located in the heart of Lynton and within the Exmoor National Park with great views.

As the concern had been traded for just 6 months of the year and often closed during peak times the accounts did not reflect the true potential of the business which can make it a challenge to fund from a lenders point of view.  As we, Stewart Hindley & Partners, are specialists in hospitality finance we were able to present a solid case to the lender with achievable goals and projections showing that debt service could be met.

Vanessa and Phillip completed on their purchase in December 2018 and are now looking forward to operating the business on a year round basis and sharing the beauty of North Devon and Exmoor with their guests and, of course, meeting lots of new and interesting people along the way!

If you are looking for a warm welcome, comfortable stay and panoramic views  why not choose Rockvale House on your next visit to the area!

https://rockvalelynton.com/

What Vanessa & Phillip say about Stewart Hindley & Partners….

From the first moment we contacted Stewart Hindley & Partners and spoke to Carol and then Mike Cox they could not have been more helpful, they were straight on the case working at such a speed it was brilliant.  Mike took away so much pressure and stress normally associated with a purchase like this, he spoke to us in such an open and honest way it was really refreshing.  His professionalism was superb and we are very grateful to him.  We know Carol did so much behind the scenes too.  We have no hesitation in recommending Mike Cox at Stewart Hindley & Partners 100 per cent. 

Thank you

Ness and Phil, Rockvale House

 

Cambridge Bed & Breakfast (formerly Harry’s B&B)

Selma & Anel Begic started talking with us in April 2018 when they were looking for a suitable bed and breakfast to purchase.  They eventually found one in June and instructed us to work with them to purchase the concern in July.

The bed and breakfast was well established and had been operated by the same owner for a number of years.  It was ready for some refurbishment which meant that Selma and Anel had the perfect opportunity to purchase a popular B&B in a prime location and which had room for improvement and business development.

The whole process proceeded reasonably smoothly with us supporting and guiding Selma and Anel through all the different stages and they completed their purchase in October 2018.  They have renamed Harry’s B&B and it is now called Cambridge Bed and Breakfast.

The location of the Bed and Breakfast is ideal for visitors to the Cambridge Business Park, most of the colleges of Cambridge University and is just 5 mins away from the river Cam and Jesus Green park, through which you can take a scenic walk to the beautiful town centre.  So, wherever you want to visit in Cambridge it is an ideal place to stay in.

www.cambridgebedandbreakfast.co.uk

What Selma & Anel say about Stewart Hindley & Partners….

I would absolutely recommend Stewart Hindley’s expertise in commercial mortgages. 

Mike Cox was excellent in keeping the process rolling and being professional even in difficult times. The rates offered saved me money in the long run, exactly what we needed with a new business. 

Mikes help with the business plan and the banking interview process was invaluable. 

Thank you for all the help and support! 

Boscastle B&B with Tea Rooms

Louise and Richard contacted us originally in August 2017 as they were looking to purchase a holiday lodge site.  Unfortunately this purchase didn’t progress but after much searching they found Bridge House in Boscastle, Cornwall.

Bridge House is a substantial stone property with popular tea rooms and guest accommodation.  Louise & Richard fell in love with it and decided this was the property for them so it was full steam ahead.

Stewart Hindley & Partners submitted a comprehensive loan proposal outlining Louise & Richards plans for the business going forward and including all historical and projected finance information.

After a successful bank meeting the loan was offered subject to valuation.  Valuers were appointed by the bank and valuation was undertaken and the report duly received.  Thankfully the valuation was positive and the purchase was completed after all the legal work was undertaken.

Louise & Richard moved into the property in July 2018 so had to hit the ground running over the busy Summer period.  If you need accommodation or something to eat in Boscastle you know where to get a warm welcome and a cup of tea!

http://www.bridgehouse-boscastle.co.uk/

Bunkhouse in Portland

Sally Robinson and her partner Tony had worked in the hospitality trade in a variety of ski/holiday resorts and wanted to use their experience to run their own business.  They came across a niche business in Portland in Dorset which was a bunk house catering for divers who regularly visit the area and decided that this was the business they wanted.

Bunkhouse accommodation may be basic but it is a very affordable option for those looking for a comfortable but cheap place to stay.  A warm, friendly welcome after a hard day diving, climbing, sailing or walking is just what is needed when you want to relax and recover from an active day out.

The property had been run successfully by the current owner to suit her lifestyle and was not being marketed to its full potential as there was a very limited website and no social media presence.  As with many bed and breakfast businesses the trade was limited but the good news was this provided Sally and Tony with a great opportunity to buy a trading business which had the capacity to increase turnover.

The purchase did present a few challenges but by working with us at Stewart Hindley & Partners these were overcome although it did take some time!  Stewart Hindley & Partners presented trade projections which were seen as being achievable and representative of the industry.

Our unique knowledge of the hospitality trade means we are able to provide lenders with deals which are not only projection led but are realistic to the trade.  Our track record with the lenders means they can trust the information we provide them.

Sally and Tony will be widening their market from just the diving community to include climbers, walkers, sailing enthusiasts and basically anyone who wants comfortable budget accommodation.

https://www.thebunkerportland.com/

Arden House – Kingussie Scotland

It had been a long held dream of Janet & Graham to run their own bed and breakfast.  In preparation and to find out as much information as possible they signed up and attended a “How to Run a Bed and Breakfast” course run by Karen Thorne in Shropshire in the summer of 2017.

Finding out what was involved was extremely helpful and spurred them onto fulfilling their dream.  The course helped them to focus on the location and type of B&B they wanted to run.  Following the course, they joined a Facebook group for course attendees and this gave them the opportunity to meet up with a couple who have run a B&B for a number of years near to Kingussie (the area they wanted to buy in).

The property they decided to purchase was Arden House which is a lovely Highland villa style property in the attractive and popular town of Kingussie in the foothills of the Cairngorms and Monadhliath Mountain ranges.  The property has a total of 8 bedrooms; 5 en-suite letting rooms plus owner’s accommodation.

Stewart Hindley & Partners wrote and submitted a comprehensive loan proposal to two lenders who showed interest in funding the property.  The property had been successfully traded for a number of years and even though the owners wanted to retire and move closer to family they were still trading as much as possible providing a good level of turnover and profit for the business.  This really helps to show sustainable trade and if/where there may be opportunities to improve the trade going forward.

The chosen lender was not always the quickest to respond so the case did take a little longer than hoped for but as with most things the best things are worth waiting for!  Janet and Graham have now completed on the purchase and moved into Arden House on 8 March 2018.

What Janet & Graham say…

We tried initially to secure a business mortgage for Arden House ourselves but this was unsuccessful.  Not to be deterred, we recalled how on Karen’s course she had recommended going with a broker and had suggested Steward Hindley.  Following an initial email, Mike, our broker helped us to revise our business plan and put us in touch with potential lenders.  As we were new to the whole process of purchasing a B&B, the help and support given by Mike was invaluable and we managed to secure funding.  We believe that without Stewart Hindley we would never have secured the funding we needed and can’t thank Mike enough.  It still feels unreal that we now actually own Arden House and have given up the 9-5.

http://www.arden-house.info/

NC500 Bed & Breakfast

Edwin & Irma had many holidays in Scotland and when they decided to change their lives they chose to move from their home in the Netherlands to Stoer on the North West Coast of Scotland.

It was a big decision for them to make and they wanted to know they were making the right choice so they did a lot of local research on the area and trade in and around The Highlands and eventually found their dream property in Cruachan Lodge in Stoer, which sits directly on the fantastic North Coast 500 route and close to the town of Lochinver.

Whilst all this was happening they were also looking at their finance options and came to the conclusion that they would need help from an experienced broker.  They chose us here at Stewart Hindley & Partners to work with them and to source the best deal available for their circumstances.

We worked with Edwin & Irma for a few months looking at various property details and their accounts and gave them an unbiased opinion on their finance options.  There were lots of emails back and forth and Edwin & Irma came over to Scotland in November 2017 and viewed a number of properties, eventually deciding on Cruachan Lodge which was a former manse and had a good historical trading history.

Once their offer was accepted on Cruachan Lodge we worked with both them and the vendors to get the deal done.  Due to Edwin & Irma’s location in The Netherlands the initial bank meeting was carried out using teleconferencing which enabled the bank to carry out their due diligence and submit the case to their credit team.  The deal was eventually approved (subject to valuation) and a commercial valuation was undertaken.  There were some details which needed to be addressed post valuation and having agreed the details completion was set for 1 March 2018.

Edwin & Irma have now moved into their new home and are looking forward to welcoming guests from Easter 2018.

Cruachan Lodge has been re-named to The Green Cruachan which reflects Edwin and Irma’s commitment to green, sustainable living.  They are offering a warm welcome, comfortable luxury accommodation and a healthy vegetarian breakfast to their guests and are looking forward to welcoming  guests.

What Edwin & Irma say:

“We would like to thank Stewart, Hindley & Partners, and especially Carol for all their time, the nice telephone calls, emails. They always gave us a quick reply if we had questions, they helped us with all the figures of the B&B’s we were looking at. It was lovely and supporting to have Carol with us during our call with the RBS, all the advice, their ideas about the properties. We felt that Stewart, Hindley & Partners were there for us, for our best interest. We really felt supported and loved.  The way of contact was Professional and personal.”

https://www.thegreencruachanstoer.com/

 

Weymouth Bed & Breakfast

Melaney first contacted us after attending a bed and breakfast course in 2016 as she wanted to buy a large guest house in Margate.  We submitted a proposal to the lender and the loan was approved subject to valuation. Melaney needed to sell her house in London and we advised her to put a hold on the valuation (so she didn’t waste the money) until she had a buyer in place for her property.

It took a few months for her to find a buyer and for the sale to go through, fast forward 12 months to October 2017…

Unfortunately, the concern in Margate didn’t wait for the house sale and was sold to another buyer, so Melaney re-evaluated her options and the area she was considering. She eventually settled on Weymouth in Dorset and found a lovely bed and breakfast for sale, Channel View, which offered a traditional style seaside property with a good trading history and good accounts (always a bonus). The property is located right next to Weymouth beach with fantastic sea views and offers accommodation over four floors with 7 guest rooms. The property is Grade II listed but had been maintained to a high standard and had benefited from having recently installed modern en-suites to all rooms.

Channel View was being sold as a leasehold property with the lease being owned by Weymouth Borough Council who own most of the seafront establishments in Weymouth. This ensures the atmosphere and style of the town is maintained. Leasehold bed and breakfasts are not easily funded however Channel View had a long lease which was viewed as a virtual freehold which meant that the lender was more disposed to consider it.

The loan submission and valuation went through without much delay and Melaney has now completed on her purchase and has started the exciting journey of running her own business. It took 18 months from idea to completion and it was definitely worth it.

http://www.channelviewweymouth.co.uk/

What Melaney says….

”I think fate played a hand in which business I purchased as I am so pleased I have ended up in Weymouth at Channel View. Carol and Chris have been a wonderful support throughout the process and their advice and knowledge of the market has been invaluable. I wouldn’t have been able to approach the bank or been successful on both occasions without their help and they have been a friendly voice through such a huge life changing project.”

A Warm Norfolk Welcome Awaits You

Jim & Theresa were living in Australia and decided it was time to return to the UK.  It had always been a dream of theirs to own a bed and breakfast and when they saw the Old Bakery in Pulham Market they decided to go for it!

The Old Bakery Pulham is situated in the popular Norfolk town of Pulham Market. Dating back to 1580, the property was once a bakery where those living in the village would queue every morning for their fresh bread. Today it still presents an abundance of original character, with exposed wall timbers, beautiful ceiling beams and inglenook fireplaces.

The Old Bakery had been traded very much to suit the owner’s lifestyle and as such the accounts were not showing the full potential of the business.  This was going to make it difficult to fund and Jim and Theresa decided to engage Stewart Hindley & Partners to find a suitable lender and competitive rates.  Mike Cox, one of the Partners here at Stewart Hindley & Partners, put the deal to a couple of lenders who he felt would be interested in the deal. Unfortunately one of them declined the deal so we proceeded with our alternative lender who had agreed to proceed.

We provided a complete loan proposal with realistic projections which showed the lender just how well the business would be doing going forward and how Jim & Theresa were intending to trade the concern in the future.

The loan was agreed subject to valuation, the next step was to arrange the commercial valuation.  The valuers were appointed and duly provided a report.  Unfortunately the property did not value as expected so Mike had to work with Jim, Theresa and the bank to agree a way forward.  There were also a few details which needed to be addressed in the property and, again, Mike was instrumental in getting these sorted.

Whilst going through the process Mike kept in close contact with Jim & Theresa and provided regular updates which could be challenging given the time difference between the UK and Australia.  He managed the clients’ and the bank’s expectations and made sure the momentum was kept up.

Jim & Theresa came back to the UK in January this year (2018) and have just completed on their purchase.  They are looking forward to receiving guests and growing their new business.

What Theresa & Jim say about us..

When we first saw The Old Bakery we fell in love with both the property and the village however it was more than we had initially wanted to spend. Having got the details about Stewart Hindley & Partners on a ‘how to run a bed and breakfast’ course we attended we thought we’d give them a go.

Throughout the process Mike was extremely helpful and kept us up to date with how things were progressing. You can imagine that being in Australia the time difference was sometimes a problem but even when we had to do phone conferences with the banks Mike managed it all perfectly even to the point of organising a conference call before hand in order to explain how it would proceed. We are very glad we came across Stewart Hindley and Partners as we are now living at The Old Bakery and have already welcomed our first guests.

Theresa & Jim

Visit The Old Bakery Website