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  • FIRST POST
    • Royal Blue
    • By Royal Blue 18th May 17, 7:45 PM
    • 2Posts
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    Royal Blue
    Mortgage for private home that also has two holiday cottages as part of sale
    • #1
    • 18th May 17, 7:45 PM
    Mortgage for private home that also has two holiday cottages as part of sale 18th May 17 at 7:45 PM
    Hi all.

    I was wondering how mortgages work when attempting to buy a property which is listed as a domestic private sale but includes a well established business in the form of two self contained holiday cottages?

    Can we use the expected turnover of the holiday cottages as a factor in affordability assessments? Would we need a business plan and audited accounts from the vendor?

    At present the property is not affordable for us but it would be with the income from the holiday lets factored in to our finances.

    I would appreciate any advice from people with experience of this kind of set up.

    Many thanks in advance

    RB
Page 1
    • amnblog
    • By amnblog 19th May 17, 8:41 AM
    • 9,260 Posts
    • 3,568 Thanks
    amnblog
    • #2
    • 19th May 17, 8:41 AM
    • #2
    • 19th May 17, 8:41 AM
    Don't get too excited about this one unless you have a strong deposit RB.

    Particular if you are relying on rental income to make affordability stack.

    There are numerous complications on a case like this and each case will have its own issues and angles.

    If you have 50% deposit or similar it may be worth engaging a broker.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • ACG
    • By ACG 19th May 17, 11:21 AM
    • 14,705 Posts
    • 7,359 Thanks
    ACG
    • #3
    • 19th May 17, 11:21 AM
    • #3
    • 19th May 17, 11:21 AM
    I'm not sure this would fit on a residential mortgage would it? Would it not be commercial where 25% deposit is needed plus interest rates of around 6% .
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • Brock_and_Roll
    • By Brock_and_Roll 19th May 17, 11:27 AM
    • 736 Posts
    • 693 Thanks
    Brock_and_Roll
    • #4
    • 19th May 17, 11:27 AM
    • #4
    • 19th May 17, 11:27 AM
    Yes (as a B&B owner), ACG is right. Furthermore, there would have to be financial information from the lettings business over a number of years to support this.


    Lots of other considerations such as the need to have blooming expensive commercial insurance cover - domestic policies wont cover you if you read the small print.
    • ACG
    • By ACG 19th May 17, 1:02 PM
    • 14,705 Posts
    • 7,359 Thanks
    ACG
    • #5
    • 19th May 17, 1:02 PM
    • #5
    • 19th May 17, 1:02 PM
    There is only I e high street lender I can think of who would do b and b bit I did not think they would do separate properties.

    I think on either case a broker would be needed to investigate the options.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • Royal Blue
    • By Royal Blue 19th May 17, 8:59 PM
    • 2 Posts
    • 0 Thanks
    Royal Blue
    • #6
    • 19th May 17, 8:59 PM
    • #6
    • 19th May 17, 8:59 PM
    Thanks for the input folks, its helpful.
    I'm going to do a bit more research and take it from there.

    Will update as I go along.

    Thanks again

    RB
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