Case Study Category: B&B finance & funding

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

Wyvern House Bed and Breakfast is located in the popular Cornish town of Bude and is just a few minutes walk from the beach and town centre.  The property offered 6 en-suite bedrooms and was spread over 3 floors, it was an ideal location for our clients, Paula & James, to set up their new bed and breakfast.

In the past Paula & James had owned and operated a bed and breakfast business so had plenty of experience on which to build their new venture in Bude.  Having found their perfect property they realised the benefits of using a specialist finance broker to source the necessary funds to purchase it.  Having contacted us at Stewart Hindley & Partners we worked with them to secure the best deal available to them and took them step by step through each stage.

All went well until there was a hiccup with their property sale which could have potentially ended the planned purchase.  Mike Cox was on hand to support Paula and James and to manage the lender and the vendor whilst the issues were resolved.  Without the help of a broker it would have been very difficult for Paula and James to:-

• Secure debt at the required level
• Secure a competitive interest rate
• Manage all parties expectations

Due to the relationship and business volumes with the lenders Brokers can access some of the most competitive rates in the market.

After a short delay the deal was successful and everyone achieved their goal.  The vendor was able to move onto the next stage of their lives, the estate agent had a successful sale and most importantly our client was able to start their new business and welcoming their guests in the beautiful Cornish town of Bude!

Paula and James are now welcoming guests to Wyvern House and enjoying life in Cornwall so if you are looking for somewhere to stay in Bude check out the availability via their website:-

www.wyvernhouse.co.uk

What do Paula and James think about working with Stewart Hindley & Partners?

My husband and I were experienced business owners, and amongst others, had owned a B&B in the Cotswolds for almost 6 years.  We decided to sell the business, due to ill health in our immediate family in 2011.  After being away from B&B for some time, we realised that we really missed it, and really wanted to get back into the business again and fulfil our dream of moving to Cornwall.  

Unfortunately, between the time we had owned our business and when we were looking to buy again, the commercial loan market had changed dramatically.  We no longer had a business banking manager, that we had a developed relationship with, and we were dealing with call centre managers who didn’t know us or our experience and despite our extensive experience with banks, found the whole system incredibly time consuming, frustrating and incredibly difficult.

After finding a couple of properties we really wanted to look at, and having sorted out our finances and timescale for our move, we found Stewart Hindley & Partners.  We contacted them in April 2017, prior to even selling our property and Mike Cox was our main point of contact.  What a relief!  He immediately reassured us that our proposition was viable, especially with our previous experience and set about putting together proposals for us.  He very quickly secured us finance at 70% LTV and we picked up the keys to our new life on 1^st September.  

We have continued trading since we moved in and are due to close at the end of October 2017 for refurbishment.  Mike also managed to secure interest only payments on our loan for 3 months to help us with cash flow for our refurb.  

Our experience with Mike throughout the whole thing was amazing.  He was professional, calm and dealt with everything.   It was truly worth every penny, as without them, we really don’t think it would’ve happened.  We didn’t have the time or the current financial market knowledge as to exactly what the banks were looking for, which put us on a real back foot.  We had a fantastic service, and I have since recommended him to other family members (most of our family are business owners) who have since retained his Stewart Hindley to secure finance for projects.

Thanks Mike, for everything!

Paula & James Lyons

Lee Scott returned to England with the ambition to own and operate his own guest house.  He found the perfect property in Llandudno, close to the Great Orme Railway and town centre so he made an offer and it was accepted.  The dream had begun to be a reality.

The business had been trading but, in the past year or so, the owners retired and ceased trading the concern.  They did, however, leave the guest house in a state where it could be traded almost straight away with just a few immediate updates to be done which was a bonus for Lee as he could more or less move in and start trading. 

Although there were some historic accounts for the business there were no recent figures.  This meant that the application would be mainly premised on projections, which is always a more challenging position from which to apply for a hospitality loan.  The fact the concern was in a popular holiday destination helped and with Stewart Hindley & Partners’ experience we were able to make a successful application on Lee’s behalf.  We supported Lee with his bank meeting and commercial valuation arrangements and made sure he was kept up to date on progress throughout the purchase.

 Lee has just taken possession of the Capri Guest House (May 2017) and is ready to welcome his guests.  If you want a seaside holiday in North Wales then I am sure you will receive a warm and friendly welcome at the Capri.  You can check out his rooms and rates at www.thecapriguesthouse.co.uk

“Stewart Hindley and Partners offered me a professional, helpful and reliable service, the service they offered was first class from start to finish. Stewart Hindley and Partners drew up a business plan and enabled me to secure a commercial mortgage for purchasing a Guesthouse and pursuing my goal in Llandudno North Wales. Further to the above I would highly recommend Stewart Hindley and Partners to any other small or large business wishing to obtain finances in said projects”

 Lee Scott – Proprietor, The Capri Guesthouse

Torquay is famous for being the largest town on the “English Riviera” and a popular choice for thousands of visitors to Devon.

Lee and Elaine Ratcliffe had been looking in Devon and Somerset for the ideal bed and breakfast business for a few months and after a couple of disappointments finally found Blenheim House Bed and Breakfast.

Blenheim House had everything they were looking for: good location close to the seafront and train station, just been recently refurbished (so wouldn’t need a lot of money spending on it) and a manageable 5 guest rooms.

From the start of their search they were in touch with us at Stewart Hindley & Partners and we were able to provide them with a judgement on whether their application would be successful or not.  It was a pleasure to work with Lee & Elaine and to see their hopes and dreams come to fruition, they are now welcoming guests and starting to build the trade to its maximum.

If you are looking for a seaside break in the West Country then give them a call, you will be assured of a warm welcome.

What Elaine & Lee Ratcliffe say:

My husband and I came to a point in our lives when the children were leaving home and doing their own thing, so we decided to have a complete career change as well as a huge move from Manchester, where we lived all our lives and move to Devon to buy a B&B.  Something we had no past experience with and no clue on how to go about starting the process of getting finance for one.

We did a lot of research on different companies that deal with Commercial Mortgages and finance and came across Stewart Hindley and Partners.  

From the minute we made contact with them until we exchanged contracts for our new property, they were absolutely amazing.  Our case manager was Carol Jones.  Carol talked our language and made everything so clear to us.  From doing business plans, arranging finance with a well know high street bank, something we could never have done without her.  She even came along to the final meeting to complete the finance process. Carol and her team were always there to answer any questions we had and simply made what was such a stressful time in our lives, so much easier.  

We can honestly say, we would never have got through the past year without their help.  They are truly an amazing team.  We are now living happily in our new B&B called Blenheim house in Torquay Devon and we have made a new friend in Carol who we thank so much.  

http://www.blenheimhousetorquay.co.uk/

Our client Kate found a beautiful bed and breakfast in Mid/North Wales located just outside the popular holiday destination of Barmouth and is situated right next to the beach.

Morwendon House has been a bed and breakfast for a number of years and the owners decided it was time to retire which provided a perfect opportunity for Kate to purchase a going concern but one which she could put her own stamp on and develop the trade going forward.

Kate has never run a bed and breakfast before and in order to understand the undertaking she was about to make she decided to attend a B&B course.  The course is run by Karen Thorne, who has over 10 years’ experience in owning and operating a B&B, and offers a good insight to what is required to be a successful B&B owner. 

The case should have been straight forward but, as sometimes happens, there were a few hiccups on the way.   Needless to say, this was a very stressful time for Kate but as her broker Stewart Hindley & Partners were able to negotiate on her behalf with the lender, valuer and vendors Eventually everyone was in agreement and the purchase could move forward.  Kate completed her purchase at the end Nov 2016 and is now open for business!  

Morwendon House will be offering a unique service as part of the B&B – Doggy Day Care! 

When guests are on holiday there are often some attractions who do not allow dogs which restricts the enjoyment of the holiday.  By offering Doggy Day Care guests can pay a small charge and have their dog looked after while they visit locations they otherwise would be unable to.  A win win situation for everyone!

What Kate thinks….

“My journey into the world of becoming a B&B owner began in early 2016. I found the most beautiful house in an idyllic location which seemed affordable.

I approached my own bank and a broker who was recommended to me, all initial enquiries seemed positive but it soon became apparent this was not going to be an easy ride. My bank having initially been positive said no and the broker didn’t fill me with confidence either so I turned to the internet for some research.

I discovered a couple of articles of interest to me. One was on a B&B owner, Karen Thorne, who runs B&B courses for beginners. The other was on a company who specialised in hospitality businesses finance, enter Chris and Carol at Stewart Hindley.

From my first conversation with Chris I was filled with a renewed confidence. Not only did he know his business he knew the area I was looking to buy in too. 

As this was all new to me I did advise Chris I would need “hand holding” through the process. What could have been a relatively straightforward purchase turned out to be anything but. The difficulties we faced gaining the finance I required were testing to say the least. Chris remained supportive and diligently professional throughout. I never at any point lost my confidence in him and the ability to get the deal over the line.

I have to say the whole experience was incredibly tense and stressful but without Chris and the team I doubt I would have been able to realise my dream.

On 20th November 2016 I finally completed on Morwendon House, two month in I couldn’t be happier.

I can highly recommend the team at Steward Hindley, a lucky find for me on the internet.”

For availability and room rates visit the  Morwendon House website

Tir-y-Coed, Rowen, North Wales

Chris and Sandra decided that they wanted to run their own bed and breakfast business and set about looking for a suitable business to buy.  After looking at several properties they eventually came upon Tir-y-Coed in North Wales.  Chris, who has a background in finance, recognised the challenges involved in securing the debt required and approached us here at Stewart Hindley & Partners to help them.

We worked closely with Chris, Sandra and the lender to secure the property.  Stewart Hindley & Partners produced a comprehensive loan proposal detailing the historic trade of the bed and breakfast, future plans for the trading going forward and projected turnover.  The purchase has now completed and Chris & Sandra moved into their new home/business at the end of June 2016.

Tir-y-Coed Country House is a beautiful former gentleman’s residence built in the late Victorian era.  The property is located in the village of Rowen inside the very popular Snowdonia National Park.  The property nestles in over an acre of beautiful, mature landscape gardens and provides a peaceful 5* experience for its guests.

The bed and breakfast has 6 en-suite bedrooms all furnished and decorated to a high standard.  The rooms are spacious and light and situated on the first floor.  On the ground floor there is a modern garden room, bar and balcony all enjoying a South facing aspect overlooking the grounds.  Tir-y-Coed is one of the finest country houses in the area, with an established trade, offering guests free WiFi, a fully licensed bar and restaurant.

Chris and Sandra plan to develop the overnight trade and food offering at Tir-y-Coed, re-opening the dining room on a regular basis and offering evening meals to local residents and guests alike.

“Right from our initial enquiry, it was clear that Chris McDonagh knew his stuff and was quickly able to provide us with what turned out to be a very accurate breakdown of the likely costs. The whole process was completed with the minimum of fuss and on time.  Throughout,  Chris and Carol Jones were actively involved in the process (including accompanying us on visits to the bank and briefing valuers) recommending other professionals such as insurers, keeping us fully informed of progress. They were always on hand to answer questions and provide reassurance and advice.  Having used brokers in the past, the service we received here was on a completely different level, and we’d not hesitate to use them again.”

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