Category Archives: UK Finance Case Studies


Commercial mortgage case study – Inn@West End

The Objective

  • Gerry Price, the landlord of the Inn @ West End, a very successful destination pub and dining establishment, wished to purchase the freehold of the concern from Enterprise Inns. Gerry had been an Enterprise tenant for over 10 years and had developed the trade substantially over the years and a consequence the monthly rent was in his own words more than a commercial mortgage.
  • Gerry had the choice of buying a freehold concern elsewhere, or consolidating on the trade he had developed by approaching Enterprise to purchase the freehold. Enterprise were receptive to the latter approach, providing the deal could be finalised and completed within 6 weeks prior to Enterprise’s year end.

The Solution

  • Given the strength of the Inn @ West End’s trading performance and given his proven operator status, debt was offered by several commercial property lenders on varying terms and incentives.
  • Additional facilities were also sought to provide for the development of the trade within the principle facility offered; with limited conditions and covenants.

The Result

The debt offered enabled Gerry to make an offer (which was subsequently accepted) for the freehold on exceptionally favorable terms, with the added benefit of the “cash back” incentive under the Government’s Funding for Lending Scheme.


Given the general attitude of many High Street lenders I was despondent that we could raise debt in our own right, even with a proven and successful track record. We contacted Stewart Hindley & Partners who steered us through the complexities of commercial property finance in the pub a sector where lenders are risk adverse with limited funds available.

The key to securing the right level of debt was to establish the market value from Enterprise’s and our own prospective, As Stewart Hindley are know to al the lenders panel valuers a desk top opinion was quickly sort which provided the base line for our negotiations and debt requirement which could be serviced from the exiting trade.

Without this invaluable advice we would have either paid a premium over market value for the freehold which would have resulted in a higher deposit requirement leaving us dependant on additional borrowings from other sources to meet the balance required to purchase the freehold.

Stewart Hindley & Partners cut to the chase without cutting corners to secure the debt within the timescales required.

Gerry Price
Inn @ West End


Guesthouse finance case study – Ouse Bridge

With a stunning position by the shores of Bassenthwaite Lake Bassenthwaite, Ouse Bridge House is an elegant Edwardian house built in the traditional Lakeland style. The residence, built originally as a private house, has been taking in guests for many years during which time its reputation as a charming, establishment full of character has been truly sealed. A superbly tranquil location for the serious walker, or the tourist, makes Ouse Bridge House an ideal place to stay for the many thousands of visitors who come to enjoy the Lake District over an ever widening tourist season.

The Objective

Both the purchasers wanted to secure a true lifestyle business away from the hustle and bustle of London and the Home Counties. To pursue that aim, they researched the market for small hotels and guest houses and bed and breakfast businesses which, by the virtue of the trade, would also allow them time to engage in their passion for outdoor pursuits.

Despite successful careers in their respective occupations and capital for a deposit they were turned down by all the major lenders due to their inexperience in the hospitality sector. The challenge was to secure a bank who had an appetite to lend to new-to-trade operators in a depressed market, where banking sentiment was at an all time low.

The Solution

After several phone calls discussing the merits of the properties that could service debt, an initial meeting with the Stewart Hindley team ensured a real understanding of their financing requirements and analysed the advantages and disadvantages of the different guesthouse mortgage options that would be available to them, given their circumstances.

Stewart Hindley & Partners’ track record in guesthouse finance, were able to provide un-paralleled access to prime lenders specialising in Lake District properties. This ensured that the new owners of the Ouse Bridge House Hotel identified a funding solution that was to meet their immediate and future requirements.

The Results

A decision in-principle credit line, subject to offer and valuation, was secured in advance of our clients offering on a particular property. Armed with the knowledge that the finance was in place at the appropriate level to conclude the deal, our clients were able to secure their purchase. The Stewart Hindley team compiled:

  • a business and marketing plan
  • revenue and cash flow projections
  • along with all the other supporting documentation required for this debt-raising exercise

The result was that the application was approved by the bank’s credit team.


We selected Stewart Hindley & Partners to advise us after being rejected by several banks because we were new-to-trade operators and had previously unrelated career experience.

We were more than pleased with the results because from the outset. We received a precise and concise assessment of the level of borrowing we could secure and service, against a number of properties, before placing an offer on Ouse Bridge House. Because the debt was already approved and in place, we were in a position to negotiate with the vendors to achieve the best guesthouse mortgage deal.

Claire & Stephan Shepherd

External links
Ouse Bridge Hotel & Guesthouse


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.

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Hotel finance – Business Recovery case study – Woodlands Lodge

The Objective

Rob and Imogene Anglaret, both of whom worked in the City of London, had a life long ambition to purchase a hotel in the New Forest. They identified the Woodlands Lodge as being perfect for their requirements. Woodlands Lodge had been on the market for a number of years and due to its declining profitability represented a hotel funding challenge (even for a proven operator, let alone first time operators) where new debt can’t be adequately serviced for the trading profit.

The Solution

Stewart Hindley & Partners prepared projections for a three year period going forward, to offer a business recovery solution. This required a restructuring of the financials to represent industry norms and meetings with several lenders to prove that the business could meet debt criteria under a “fair and maintainable trade concept.

The Result

  • hotel loan was secured on advantageous terms (considering that Rob & Imogene were new-to-trade operators) on the basis that the business improved upon its profitability by reducing excessive overheads and through revenue development.
  • Since the Anglarets acquired the business they have successfully returned the business to profitability and have significantly improved the trade and the general appeal of the hotel to existing and prospective guests.


Stewart Hindley & Partners invested a great deal of time and resources in securing this debt; when we approached our own bank they agreed in-principle, but then declined on the basis of the hotel’s profitability and that as unproven operators we may not have the wherewithal to activate a [business recovery]

Stewart Hindley & Partners secured offers from two commercial property lenders allowing us to make a clear business choice and negotiate the best deal.

Stewart Hindley also secured a residential mortgage on our behalf on the adjacent house to the hotel.
They dealt with every aspect of these transactions, which included the valuation report and agreement of the goodwill and fixtures and fittings apportionment, and the “Share Purchase Agreement” which in itself was complex and required a full and comprehensive understanding of taxation and allowances to ensure our best interests were met for the future.

Rob & Imogene Anglaret
Woodlands Lodge Hotel


Commercial property lending case study – Rivenhall

The Objective

Mark Venkatasami a proven health-care operator, wished to diversify into the hotel sector to provide additional health-care related services and conference facilities rather than hiring these facilities from nearby hotels and conference venues, he decided that a hotel would offer synergy with his existing business interests.

Mark offered on the Rivenhall Hotel and Spa which was accepted by the joint administrators, subject to hotel finance.

The Solution

  • As the concern was in administration, no accounts or warranties could be offered. As a consequence, securing hotel lending would be on a closed value (bricks & mortar), rather than off open market value, which would have required a high deposit.
  • As the disparity between open and closed values was substantial, the commercial property lenders agreed to take a charge over other assets to secure the debt quantum required to proceed with purchase, without the need for personal guarantees.

The Result

The hotel finance deal offered enabled Mark to purchase Rivenhall at a competitive price over a term of 20 years with an initial 5 year fix to provide certainty in regard to debt service. The deal went forward on the fixed rate for the initial term, thereafter reverting to a standard variable rate.

Given the administration process and the declining revenue, standard debt servicing criteria would not have been met. Stewart Hindley & Partners proposed an elegant solution that met the lenders criteria and reduced the deposit required.

This allowed for additional capital to be invested into the business, rather than making weight with bank debt.

Stewart Hindley & Partners:

  • undertook the whole debt raising process and
  • prepared forensic accounting services to substantiate the trade undertaken at Rivenhall for the purpose of the lenders debt servicing requirements
  • carrying this out on their standard “no win no fee” terms, despite the substantial up-front professional fees incurred in their debt submission to the lenders. Other brokers had demanded up-front fees given the difficulty of securing the quantum of debt required.


All in all a successful outcome from a professional team of industry experienced accountants and brokers with real “hands on” operational experience. Stewart Hindley & Partners provided a high degree of confidence to all parties concerned in this challenging transaction.

Mark Venkatasami
Rivenhall Hotel & Spa


Hotel Finance Case Study – Home Farm

From its elevated setting and highly visible roadside location (on the A35 between Axminster and Honiton) Home Farm is – as its name implies – a warm and intimate hotel that has been created around a 16th Century thatched farm house.

The converted old stable block provides an additional letting annex opposite the main hotel in a pretty cobbled courtyard. Importantly, its location and style of mixed tourist, commercial and restaurant trade, provides for an all-year-round income.

The Objective

Home Farm represented a hotel finance challenge to our clients who were new-to-trade and also wanted to purchase the adjoining substantial residential property (which was also owned by the vendors) to provide separate living accommodation.

The objective was to secure two routes of hotel finance, one for the businesses the other for the residential property within a matter of weeks as the vendors were in the process of emigrating.

The Solution

Following an initial meeting with the vendors and the purchasers to fully understand the business dynamic, Stewart Hindley & Partners developed an acquisition and debt strategy to provide the purchasers with a solution which was not only fundable, but also tax efficient and one that didn’t entirely depend on the businesses trading profit to service the combined debt.

The Result

Stewart Hindley & Partners’ delivery ensured a real understanding of their financing requirements and analysed the advantages and disadvantages of the different hotel loan options that would be available to them given their circumstances. Their track record in hotel lending provided un-parallelled access to prime and lenders specialising in new to trade operators in the West Country. This ensured that the new owners of the Home Farm Hotel secured a funding solution that met their immediate and future requirements.

Given the complex nature of the transaction, substantive meetings with several lenders were facilitated by Stewart Hindley & Partners. We recommended a lender who could offer flexibility terms including the facility to start on an interest-only basis, with the option to switch to a repayment profile at any time during the term of the loan.

A decision in-principle loan offer, subject to valuation, was successfully secured on the above basis.


We selected Stewart Hindley & Partners to advise us because they fully understood our requirements and the complex nature of the seasonal trade. They appreciated the loan profile required to purchase both the business and the house on separate mortgages at competitive rates.

We were more than pleased with the results as from our perspective it was a hands-off transaction. The Stewart Hindley team kept us fully informed during the entire process and while there were a few heart-stopping moments during the purchase, the debt was finally secured at very competitive rates with the minimal amount of fuss and distraction to our lives.

Ashley Gray Proprietor Home Farm Hotel


B&B finance case study – Sherwood Guest House

The Sherwood is an up-market and contemporary AA 4 Star guesthouse within a rare 3 storey Victorian town house property with a highly desirable prime seafront position in one of the most sought after areas of the seaside town resort of Cleethorpes (NE Lincs).

The Objective

The applicant had previous management experience of the hospitality sector having worked in a variety of roles in the hospitality and other customer facing sectors, was looking for additional guesthouse finance to make weight with her own capital, in order to purchase her own bed & breakfast business.

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Commercial property lenders case study – Highfield Hall Hotel

The Objective

  • Lorraine and Richard Earl had family connections to the hospitality industry and after an established career as an accountant; Lorraine persuaded her husband Richard, who had been in the automotive industry, to follow their family into the trade. After many months of research, they identified Highfield Hall near Chester as their ideal business opportunity.
  • Highfield Hall Hotel represented tremendous value, but traded well below its potential as a result of the vendors low key approach to the trade over several years pending retirement. It would therefore represent a challenge to most uk commercial lenders debt criteria.

The Solution

  • After meeting with various commercial property lenders it became evident that debt could only be offered if supported by an additional source of income. This would be until such time as the business could service the debt (when stress tested) in its own right.
  • A lender was ultimately sourced that offered to accept a personal guarantee in favor of debt servicing. This would make additional funds available in support of debt service, if it became an operational necessity to do so.

The Result

The commercial mortgage offered:

  • was ultimately secured by Stewart Hindley & Partners without the need for any personal guarantees and at very competitive market rates, given the unique nature of trade given the pending retirement of the owners.
  • enabled the Earls to purchase Highfield Hall at a competitive price on a viable interest rate, over a term of 20 year
  • allowed for the business to service the debt within the commercial lenders criteria, without duress to cash flow.
  • meant the Earls could focus on developing and managing their trade, rather than worrying about meeting day to day cash flow requirements.


With Stewart Hindley & Partners working for us, we felt totally assured and confident that the debt would be offered within our and the vendor’s timescales. Without their support its doubtful today that we’d be the proud owners of Highfield Hall.

Lorraine & Richard Earl
Highfield Hall Hotel

Stewart Hindley & Partners have a team of brokers who are qualified accountants and who really understand the hospitality sector. We are in a perfect position to secure you the best commercial mortgage deal for you, from a choice of commercial property lenders. Contact us now for further details.


Hotel Finance Case Study – Wrea Head Hall

An elegant Yorkshire hotel set in acres of landscaped grounds, in the village of Scalby on the edge of the North York Moors National Park. This stunning Gothic mansion with uninterrupted views across the Yorkshire countryside is arguably the best of all the Scarborough Hotels and just a short drive from the Yorkshire Heritage coast.

The Objective

We were approached by this “new to trade” hotel operator, who was seeking to raise hotel finance to refurbish the interiors to contemporary standards and offer fine dining. to assist with the purchase and to maintain and develop the hotel’s traditional and historic connections.

The Solution

An initial meeting with Stewart Hindley & Partners helped the operator to gain a real understanding of the different hotel loan and hotel finance options which would be available to them, taking into account that they were new to the trade. Stewart Hindley & Partners are able to provide un-paralleled access to prime and specialist lenders throughout the UK which ensured that the owners of Wrea Head Hall were able to select exactly the right funding solution to meet their particular needs.

The Result

Stewart Hindley & Partners put together an application for Wrea Head Hall, complete with a business and marketing plan which included compilation of revenue and cash flow projections. A decision in-principle loan offer, subject to valuation, was secured within 72 hours from receipt of the application which meant that Wrea Head Hall were able to start planning their refurbishment works prior to taking on the business.

Wrea Head Hall is now home to one of the best restaurants in Scarborough “1881” serving delicious contemporary British cuisine in classic surroundings. Named after the date the house was built, the restaurant oozes class with gold glistening from the hand-blocked wallpaper and antique mirrors and beautiful gilt wall lights set above polished oak panelling. The refurbishments also included a classically decorated private dining room, complete with crystal chandelier and a bar which is a mix of classic and contemporary design complete with original oak panelling, original sculptures and works of art.


When deciding to embark on a major change in business we felt that trying to take on the sourcing of financial support ourselves, with the many other things that needed our attention to bring this project to life, was not the best use of our time; and we were recommended to Stewart Hindley. We found that Chris had just the right mix of business and financial experience to allow us to discuss our plans with him fully, before finalising our requirements. We were very happy with the service we received and would recommend Stewart Hindley to anyone needing support for a major project.

Gerry Aburrow, Proprietor of Wrea Head Hall