Buying the house next door

angela62_2

Can someone give me advice about the following:

I live in a thatched cottage in a very popular tourist destination in Dorset. I run my home as a B&B which is incredibly popular from May-October. The thatched cottage next door has recently come up for sale and it would be great if I could buy it as a holiday let - plus the shared drive would become all mine, it would increase my parking, give me a huge garden, a large garage, a good income and would be so easy to manage on top of the B&B. What would be the best way to finance it? I have no deposit, but my present property has a large amount of collateral in it, but don't know if this could be put to good use. Any advice would be much appreciated.

puddy

are you mortgaged on your current property?

are there any doubts that you would get permission to turn the new property into a b and b from the council or whatever?

do business loans cover things like this, or a commercial mortgage?

cramg

First point of call here is to speak to your neighbour and tell them your interest. What is their situation? You never know, they may agree to rent it out to you while you get some finance sorted?
I would then approach a bank (business department) and discuss your situation with them, If you have good books with your business & equity in your own proerty they may loan against that.
This is a business deal and not a personal deal, i would also seek advise from a financial advisor.
My tip would be to contact Yorkshire Bank's business division - we met them last week in relation to our business and you will be suprised what they say about lending at present.

poppysarah

Do you have at least three years accounts for your current B&B business?

Does it make a good case financially borrowing the money?

jimjames

It is possible that you could increase the mortgage on your current property and get a Buy to Let on the property next door.

This assumes that the sums add up and your rental income would cover 12 months of mortgage