Finance case study – Wylfa Guest House

From its wonderful location in the heart of the village of Abersoch, The Wylfa Guest House boasts a superlative position close to the beach and just a stone’s throw away from the Abersoch Golf Club.

Built at the turn-of-the century, this large, detached house is a classic example of the style of property from this era and was originally built as a smart, private residence.

Abersoch offers visitors a unique vibrancy and buzz whilst still managing to retain the laid back, relaxed atmosphere so lacking in many seaside resorts.

The Objective

The Wylfa Guest House appealed to our clients as they already had a holiday lodge in Abersoch and wanted to move there permanently, from their then home, near Chester. As their income status didn’t tick all the lenders boxes to purchase the Wylfa, the objective was to source guesthouse finance from a lender who understood their position and the superb business opportunity offered by The Wylfa, despite the absence of the vendors accounts. Accordingly a significant amount of work was also required to present the vendors trading information in an acceptable form to enable the lender to consider the debt opportunity.

The Solution

After meeting with our client, we summarised their current income and future debt requirement, This involved negotiating with a specialist commercial property lender to realise equity in their property, which added the necessary capital to make weight with the total debt requirement. We presented this as a “turnkey package” to a regional lender with an understanding of the seasonality of the trade in Abersoch. The guesthouse finance solution allowed for a repayment holiday in the low season to maintain their cash flow. Our client’s additional third party business income was also taken into account, which helped secure the decision to lend.

The Result

After working with the lender’s panel valuers, a positive valuation was secured against the financial information provided by Stewart Hindley & Partners to prove that debt service could be met and maintained during the period of the B&B mortgage and most importantly during the first three years of trade, as this is when new to trade operators are most likely to be subject to the vagaries of the trade. Again Stewart Hindley & Partners’ understanding of the market and the lenders debt profiles for new-to-trade guesthouse/bed and breakfast operators ensured a successful outcome; with debt secured over a 20 year term, at competitive rates.


“We selected Stewart Hindley & Partners to advise us because after speaking with other banks and brokers, they responded very positively and timely, stating that they could secure the debt within our timeframe, despite the complexity of our own situation as new-to-trade operators and the absence of the vendor’s statutory accounts.

“We were more than pleased with the result which involved acquiring the debt from two sources of guesthouse finance to enable us to proceed with purchase. One of Stewart Hindleys business consultants met with us at our home and at the Wylfa, and was quick to demonstrate an understanding of all aspects of the business and our circumstances. It was that which proved crucial to ensuring the lender’s approval. Following on from that, and most importantly, they kept us fully updated throughout the whole process.”

Debbie & Steve Hedley Proprietors Wylfa Guest House

If you would like discuss your guesthouse finance options with UK commercial property lenders, Stewart Hindley & Partners, contact us for further information.


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