70% Loan To Value
10 year Interest Only
Interest @ 3.99% Over Base rate
0.75% Arrangement Fee
After a busy working life our clients were looking to retire and whilst they wanted to slow down, they didn’t want to give up work completely.
They had in the past stayed at a cottage in Wales and when it came up for sale along with three others, they were keen to see if they could purchase them and operate them as holiday lets.
They had a pot of savings and were able to take a lump sum from their pensions but had little in the way of experience in the sector.
We contacted some lenders who specialise in Holiday Let finance and discussed the viability with them, and we agreed on a broad approach which would see the clients prepare a business plan and financial projections.
We then presented the business plan along with supporting documents to the lender who could see that it was well thought out and because we had also sought the input from a holiday lettings firm to confirm the rental potential, they could get comfortable with the projections.
The lender made an offer of £450,000 against a combined purchase price of £650,000 on an interest only basis for 10 years.