Holiday let mortgage advice please

[KCH]

Hi .
My wife and i have run a sucssesful holiday let business in kent for the past four years, we have a country cottage within 1 acre, within the grounds we worked hard to have gained planning permition to build a lodge, thus creating a tot of two lets which bring in £60k pa, we also property manage 2 appartments on the coast comission based £6k pa.
we have reinvested most of the income building the buisness showing very little profit.
we live in a 3 bed semi valued 200k mortgage 145
my wife has 34k from her full time job

we are trying to buy a seafront property and had a offer exepted. 170k we intend to make changes and convert it to a holiday let.

whats the best way forward? is there a lender who would lend on turnover rather than net profit.

[Enness Private Clients]

Hi,

Have you tried the banks you have relationships with already - they are the most likely to help as they have history on your activities. Otherwise you should look for a good commercial broker or even consider bridging finance if the new property is a good oppertunity

[brian]

Banks do not want to lend against hospitality businesses at the moment, due to the downturn in the sector.

[ComareTheMortgageMarket]

As the banks will not look at turnover,only income drawn from the business you would find it difficult to get funding using a residential lender. You could however put the property to a buy to let lender where you would only have to prove gross income over 25k per annum in most cases, and in some no proof at all. Downside would be coming up with 25% deposit and the property having a rental yield of 125% of the mortgage payment. By all means get in touch should you still be looking at financing this venture.