One of the reasons so many people buy a B&B or guesthouse is so they can use it as a nice way to earn an income as they start to wind down and think about retirement. It’s a wonderful lifestyle, for sure, but if you are a business owner who’s thinking about retiring from the hospitality trade, you must make sure you do it the right way.
Continue reading “Thinking of selling your B&B or Guest House business and retiring?”
Opening your own B&B is a life-changing experience, one that can be a dream come true. Providing you observe the rules around trading, that is. One of the most common and most costly mistakes made by new-to-trade owners is operating on a residential mortgage when they should have a commercial mortgage for their B&B. It’s something we’ve seen and dealt with frequently; a pitfall which can put people in a very difficult situation.
Continue reading “The pitfalls of trading a B&B on a residential mortgage”
Owning a bed and breakfast is one of the most commonly held life goals; the dream of those who long for a better quality of life and the chance to be their own boss. Who could want for more?
Securing the mortgage for a B&B purchase is rarely easy, but it’s certainly not impossible – our case studies are proof of that. If you’ve been asking yourself: “How do I finance a B&B?”, the following insight might help.
Continue reading “How to finance a bed and breakfast: your questions answered”
We were instructed by a client in East Sussex who had been with her bank for over 40 years. She purchased a house in a popular tourist town close to Brighton in East Sussex with a regular residential mortgage but after moving in she decided to let out two of her three bedrooms as B&B accommodation. She traded well and paid her mortgage every month, unfortunately the bank then realised she was trading the business and as her mortgage was not a commercial one they called in her loan due to a breach of covenant.
Continue reading “Getting a Commercial Mortgage is not always easy!”
