SERVICED ACCOMMODATION

The Background

The serviced accommodation sector has experienced significant growth over the past five years, and our clients recognized the potential for higher returns. They had previously acquired a run-down property and successfully transformed it into four luxury self-contained flats in a picturesque seaside location. Each flat would be individually let as serviced accommodation to holidaymakers and contractors working in the area.

The Challenge

Securing long-term funding posed several challenges for our clients:

• Multiple Applicants: The limited company owning the business had five applicants, which presented its own complexities.
• Unit Consideration: Most lenders typically consider single units for holiday lets or serviced accommodation, rather than multiple flats within a single block.
• First-Time Landlords: All applicants were first-time landlords and property investors, lacking prior experience to provide comfort to the lender.
  

The Solution

We were thrilled to collaborate with our clients and successfully secured competitive terms from a commercial lender. The final financing arrangement was at 75% Loan-to-Value (LTV) on an interest-only basis. With this project now operational, our clients are already making progress on their next, even more ambitious venture.