Guesthouse finance case study-Radcliffe

The Radcliffe is a charming 17th century property in a terrace of other period buildings. Some of the rooms have wonderful views out over open countryside an Area of Outstanding Natural Beauty adjacent to the Forest of Dean and between the Black Mountains, the Malvern Hills and the Cotswolds.

The Objective

The Radcliffe Guest House represented an opportunity for our clients to acquire a business which was located minutes away for where they lived and offered them a unique business and life style opportunity.

The objective was to raise finance against the concern to make weight with our client’s deposit. However, as the business didn’t perform to the lenders criteria, a significant amount of work was required to bring the vendor’s accounts into an acceptable form which would enable them to consider the debt opportunity.

The Solution

We set up an initial meeting with the valuers to establish what value they’d attribute to the business. Revised accounting information debt proposals were then submitted to several lenders specialising in bed and breakfast loans.

Our client’s additional third party income was also taken into account to service the debt and it was this which secured the decision to lend.

The Results

Again, our understanding of the market and the lenders debt profiles for new-to-trade guesthouse and b&b operators ensured a successful outcome with a bed and breakfast mortgage secured over a 20 year term at competitive rates.

After working with the valuers, a positive valuation was secured against the financial information provided by Stewart Hindley & Partners. This persuaded the lenders that the debt could be serviced and maintained over the period of the loan and most importantly during the first three years of trade, which is when new-to-trade operators are at most risk.


We were recommended to Stewart Hindley & Partners by the sales agent as being able to source bed and breakfast finance for new to trade operators, where the vendor’s accounts couldn’t prove debt serviceability.

One of Stewart Hindley’s consultants met with us at our home and at The Radcliffe and we were confident that he fully understood all aspects of the business and our circumstances. With his team’s help, we were able to complete the purchase, so were more than pleased with the results.

Andrew & Beth Morgan, Proprietors

External links
The Radcliffe Guest House

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