Mortgage for private home that also has two holiday cottages as part of sale

Royal_Blue

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 :cool:

RB

amnblog

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.

ACG

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% .

Brock_and_Roll

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

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.

Royal_Blue

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