Category Archives: B&B Finance & Funding

Bridge House

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/

St Ives Dunoon

St Ives Hotel Dunoon – 1 year on

Katia and Jonathan Smith decided they wanted to run a bed and breakfast in Scotland and after researching the areas and looking at what was available they decided to purchase the St Ives Hotel in the coastal town of Dunoon.

The hotel was in a good location being close to the sea and town facilities and had been run by the owners for 33 years.  The owners decided it was time to retire which provided Katia and Jonathan a great opportunity to purchase a going concern with plenty of potential in increase the trade.

Both Katia and Kevin worked in professional roles in London and had excellent transferable skills so although they had never run a bed and breakfast before they had great interpersonal  skills and Katia had a good level of online marketing experience which was  shown in by her work with MumsNet.

We worked closely with Katia to progress the purchase and  we are pleased to say that they began trading in August 2017 since which time they have upgraded the rooms and have achieved excellent Trip Advisor reviews including a Certificate of Excellence for 2017!  A great achievement in their first year of trading.  It is definitely the place to stay if you are in Dunoon!

Visit St Ives website  https://www.stives-hotel.co.uk/

Arden House

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/

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Beaufort House – Loch Ness Views

Glenn and Samantha came to us originally to purchase a different B&B in the region of Lochinver but they were unable to come to an agreement with the vendor so they looked for another opportunity and widened their search area.

Fort Augustus is a lovely small town more or less half way between Fort William and Inverness and is where Loch Ness, the Caledonian Canal and the River Oich meet.  It is a popular place for tourists to watch the many boats go through the canal locks as well as visiting local film locations.  The Great Glen Way passes through the town which makes it a popular destination for walkers.  A property that used to trade as a B&B but was now closed was on the market and was the ideal property for Glenn and Samantha with great views across the town and Loch.  After viewing the property, they could see the potential and spoke to us about a projection led debt application.

It is always easier to secure debt on a trading concern but due to the location and condition of this property it was definitely worth pursuing.  We spoke to some lenders to gauge their interest and found one who was fully supportive so it was full steam ahead with the application.

Glenn and Samantha were new to trade but were fully committed to their new change of lifestyle.  As Stewart Hindley & Partners are specialists in new to trade operators we were able to present a comprehensive application to the lender which we are glad to say was successful.

The only hiccup in the process was the fact that the property did not appear to be registered with the local council as a commercial property (something to bear in mind when looking at commercial property!), this was raised in the commercial valuation report and needed to be addressed by Glenn and Samantha.  Change of use was applied for and they completed on their purchase at the end of September.

Since completion Glenn and Samantha have worked hard refurbishing the rooms and now provide comfortable, modern accommodation for their guests.  Beaufort House is now open for business and is ready to welcome you.

www.beauforthouse.co.uk

What Glenn & Samantha say..

Making the decision to give up the regular ‘9 to 5’ life in Leicestershire was the fun part – starting to wade through the extensive information and processes to make buying a B&B a reality; not so fun!

Thankfully we discovered Stewart Hindley & Partners and from there on the journey was, quite honestly, a very positive and confident one. There are few organisations who successfully combine high professional standards with sincere empathy and personality – we experienced both working with Chris and Carol; both of whom were always at the end of the phone any time to advise us, answer any questions and guide us through this process.

If you are planning to go down the route of purchasing a B&B we absolutely recommend Stewart Hindley & Partners all the way – you can’t go wrong with them! 

Samantha & Glenn

Beaufort House Bed & Breakfast, Fort Augustus

cruachan lodge 2

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/

 

Penvith Barns

Relax in Cornwall

Theresa and Andrew Nicholson wanted to make a career change from Sales and Marketing into hospitality and decided Cornwall was their preferred location.  After looking at a number of properties they decided that Penvith Barns, near Looe, was the perfect property for them.

As new to trade operators they realised they would require help to raise the finance for their purchase.  What seemed a straight forward case soon turned into a more complicated one as there were a number of unexpected issues with the property and the purchase overall.

Because we specialise in hospitality we understood the requirements of the lenders and the business going forward.  The team here at Stewart Hindley & Partners, working closely with Theresa and Andrew, were able to present an achievable business case to the lenders and assisted as intermediaries with the vendor to overcome the difficulties within the purchase.

Cutting a long story short, we successfully secured the required funding, at a competitive rate and enabled Theresa and Andrew to live their dream!

What Theresa & Andrew say about us:- 

With the benefit of experience in large corporations, as well as owner run entrepreneurial environments, nothing could have prepared us for the challenges we faced in raising finance in the right structure for the purchase of Penvith Barns.

The level of hurdles we experienced for our purchase, that we could not have got around without Chris, seemed insurmountable. However his guidance and partnership along every step of the journey was invaluable.

From helping us to interview potential lenders, let alone lining them up in the first place, to cancelling holiday plans as we got closer to exchange contracts, seemed all part of the service.

The joy of Stewart Hindley & Partners is enforced by the ability to help structure our business in the most efficient way to ease our structure as we develop the business and move forward with their knowledge and experience. 

Without Stewart Hindley and Partners our dream and lifestyle change simple would not have happened and we can’t thank them enough.

http://www.penvithbarns.co.uk/

Park View B&B

Park View B&B – Glen Coe on your doorstep

Johnny Buckland had been running the Park View B&B in Ballachulish for a few months as a leaseholder and the opportunity arose for him to purchase the freehold and make the property his own.

Johnny recognised the value in using a specialist Finance Broker and decided to contact us at Stewart Hindley & Partners.  After some initial discussions it was decided the best way forward was to release some equity he had in another property to help with the deposit for the purchase and to have a commercial mortgage for the rest of the purchase price.

We were able to recommend a residential broker who helped him with his equity release which enabled him to proceed with his commercial mortgage application.  During the process the vendor requested regular updates which we provided on a 2 – 4 week basis.

Park View B&B is located in the beautiful Glen Coe area of Scotland which is a stunning area for walkers, skiers and general sightseers. The B&B offers comfortable rooms at reasonable prices and Johnny has a wealth of hill walking and mountaineering experience he is keen to share with you.  He is happy to provide general safety advice or a range of walking routes to suit all abilities, staying at Park View gets you a little added value!

http://www.parkviewbnbscotland.co.uk/

Five Key Factors To Consider When Converting A Home To A B&B

Five Key Factors To Consider When Converting A Home To A B&B

If you are thinking of running a bed and breakfast business from your UK home, this will almost certainly involve significant finance considerations.  Our specialist team of b&b finance advisors, here at Stewart Hindley, have identified 5 key factors which will come into play:

  1. Planning Permissions

Whether or not you will need building planning permissions will depend on the amount of building work required and will be subject to the local authority’s usual residential planning guidelines.

If you are converting more than one or two bedrooms, you may also be required to apply for ‘change of use’ and your local council should be able to provide advice.

  1. Building Regulations

The building regulations which apply to bed and breakfast establishments change quite regularly, particularly with regard to health and safety regulations, so it’s vital to refer to an up-to-date source of information.

Different regulations will apply depending on the size of your house and the number of guests you want to accommodate.  At minimum, you are likely to have to install things like fire doors, emergency lighting and fire safety signage, and the kitchen will probably need some work too.

Bed and breakfast businesses are also required to offer separate washing and toilet facilities for your family which won’t be used by guests and you may find that this involves quite a lot of unexpected work.

  1. Fitting Out Costs

Furniture and fittings will need to be of good quality to withstand constant use, and soft furnishings and beds etc will need to comply with current fire regulations.

To attract guests in a very competitive UK b&b market, allow enough in your budget to make communal areas like dining rooms and lounges, clean, bright and fresh.

  1. Advertising and Marketing costs

The hardest part of advertising and marketing is to come up with your image and style.  We would advice setting some money aside to commission a graphic designer to come up with a logo and brochure material to give a professional look to your website and promotional materials.

Spend time researching the local market and the search engines, like Trip Advisor, which are likely to be most effective at attracting the clientele you are seeking to attract.

  1. Do you have a b&b mortgage?

If you are thinking of running a b&b from home, you are legally required to advise your current mortgage provider of your intentions.  Most residential mortgages do not allow you trade rooms, so you would need to re-mortgage onto a commercial mortgage –  but don’t worry because our team at Stewart Hindley & Partners can advise you.

There are a limited number of lenders who will allow 1 or 2 rooms to be let on a residential mortgage, but it has to be done in agreement with the lender.  If a lender realises that you are trading on a residential mortgage they can call in the loan due to breach of covenant.

Trading on a residential mortgage can have serious consequences.  You could be forced to re-mortgage and in some cases, if your trade income is not enough to cover the amount of debt involved, this may not be possible. The worst case scenario may be that you lose your home as well as your business.

We strongly recommend that you don’t wait until it’s too late and look to take out a commercial b&b mortgage from the start.

Contact us now for friendly and professional advice based on many years of experience in the bed and breakfast and hospitality finance sector.

Sources:

http://www.startabedandbreakfast.co.uk/b-and-b-how-do-i-convert-house.html

Capri GH

Bed & Breakfast Dream Come True in Llandudno

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