Are you looking to open a bed and breakfast (B&B) in the UK? Wondering where to start when it comes to securing the finance you need to purchase a bed and breakfast? If the answer is yes, you’re in the right place.
Many people dream of owning their very own bed and breakfast in the UK, but they don’t know where to start. The process can seem daunting, particularly if it’s the first time you’ve bought a B&B or hotel.
We’ve created a helpful guide outlining everything you need to know about starting a bed and breakfast in the UK.
Is owning a bed and breakfast right for you?
The first thing to consider is if running a bed and breakfast is right for you. Why are you thinking about buying a bed and breakfast? What are you hoping to achieve? And do you have the skills and qualities you need to run one?
Starting a bed and breakfast is a massive commitment and can be life changing. So, think about what your expectations are and consider all the pros and cons of running a bed and breakfast. You should also think about whether it’s truly the lifestyle you want – it might seem idyllic, but running a bed and breakfast can be a lot of hard work, including early mornings, late nights and very few days off.
Consider the following points:
- Are you familiar with the location of the bed and breakfast?
- Have you got a strong support base around you?
- Are you a multi-tasker?
- Are you good at coping
- Do you like the idea of being self-employed?
- How do you cope with routine?
- Do you cope well under pressure?
- Do you love people and enjoy being around them on a daily basis?
Choose your bed and breakfast property carefully
If you’re certain that owning a bed and breakfast is right for you, it’s time to start looking for the right property.
Think about the location, how many bedrooms you want, and if you want a property that’s ready to go, or one you can work on as a project before you launch your business.
What type of mortgage do you need to purchase a bed a breakfast?
The next step in setting up a bed and breakfast is to secure a mortgage. You’ll need a commercial mortgage for this type of purchase.
Many commercial mortgage lenders are happy to lend on bed and breakfast properties and these are available as fixed and variable-rate loans that usually have a repayment span of one to 25 years. Remember that deposits for commercial properties tend to be around 35% or 40%.
Budgeting and planning
You’ll need to plan your budget to ensure that the bed and breakfast business is actually viable. Remember to allow for seasonal peaks and dips, and ensure you can cover all your costs.
Consider how you will market your business. Who is your target audience? And how can you reach them?
From social media platforms and websites, through to traditional methods such as flyers, advertising and more, there are plenty of ways to promote your new bed and breakfast business. You may also decide to advertise via an online booking site.
If you’re considering buying a commercial property such as a bed and breakfast in the UK, it’s important to speak to someone experienced in the sector to ensure that you are aware of all the funding options available to you. Get in touch to speak to one of our skilled and experienced team. We are always on hand to answer any of your queries regarding commercial mortgages.