Category Archives: Commercial Mortgage

New owners at Ellinbrook Guest House – Hunstanton

Richard and Nicola had been letting out Daisy’s Cottage in Wells next the Sea and decided that they wanted to take their letting to the next level so started to search for a suitable bed and breakfast property in Norfolk.

They found Ellinbrook House in the popular coastal town of Hunstanton. It wasn’t until they started to look at funding options they decided that the best course of action was to engage a specialist broker to help them secure the best possible deal given their personal circumstances. Richard contacted us here at Stewart Hindley & Partners and the journey began in earnest.

We liaised with a number of lenders, not all of whom were interested in funding the deal, however we did manage to secure them the required amount of funding to enable them to purchase their new venture. To help minimise the lenders risk Nicola will continue to work in her current employment on a work from home basis and will be on hand to help Richard with changeovers and busy periods.

The lenders see a background income as reducing their lending risk but it is not taken into account when looking at the lending requirements, the business must be able to support the debt service or at least have the potential to do so. You should always bear this in mind when you are looking to buy a B&B.

Even though Richard and Nicola had been letting out their holiday cottage for a number of years they were still considered as “New to Trade” by all the lenders. It has taken a bit longer than initially assumed but they have now finalised the lending and will be open for business from September 2019. So, if you want to have a relaxing stay on the Norfolk coast why not check them out at Ellinbrook House

What Richard & Nicola say about Stewart Hindley & Partners……

When the opportunity came up to purchase Ellinbrook House we knew we would need assistance from a specialist broker to help secure the funding we would require. We spoke to a couple of firms but were struck with how professional Chris was and how well he explained the whole process to us.

Despite a couple of setbacks along the way Chris and Carol worked tirelessly to secure us the funding required, I don’t think there would have been any way for us to have secured it without Chris and Carol’s help. We are now up and running and loving it!

Thanks for all your help, Richard & Nicola

Ellinbrook House 

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

How a B&B Commercial Mortgage makes good financial sense for your B&B business

With New Year around the corner, many of us start to think about what we want out of the year ahead.

The prospect of being your own boss and running a lifestyle business from home definitely has its appeal and a B&B Commercial Mortgage can help you to make that dream a reality.

New Year offers a new start, a chance to take the first step towards achieving those dreams and creating the life that you want. Whether you’re looking for freedom from office politics, or whether you’ve always dreamed about being the hostess with the mostess and creating a welcoming environment in your home for tourists and holiday makers, or whether you just want another income stream, a B&B could be exactly what you are looking for to take control of your own lifestyle and work from home.

One of the first things you’ll need to consider is B&B Commercial Mortgage finance. You’ll need capital to invest, but it’s likely that beyond a deposit, you’ll need B&B finance to bridge the gap.

Why B&B Finance?

If you’ve already got a mortgage on your existing home and you’re planning to borrow against it, you may want to reconsider. Using a standard residential home mortgage can lead to your mortgage debt being called in early if you are making an income from letting rooms in your property.

If your mortgage debt is called in early, you’re then faced with a challenge – either find alternative B&B Finance at VERY short notice or lose your home and your livelihood.

Other reasons you might need B&B Finance

Perhaps you already have a B&B that you don’t feel fulfills its potential. Sometimes a small cash injection is just what you need to be able to create the business you want, or to open up new opportunities with what you have.

Often a B&B Commercial Mortgage provider will take into consideration your plans for the business, delivering greater potential benefits at a lower rate than a standard credit card or bank loan might do.

Stewart Hindley & Partners are hospitality finance specialists that can help you find the hospitality finance you need to build the business you’ve always wanted. For more information on how you could benefit from hospitality finance, or to find out how you could raise finance for your hospitality business, contact Stewart Hindley & Partners on 01488 393049.