Financing a holiday letting business

[simon-spcix]

Hi All,

Long time lurker and regular reader here, looking for a bit of advice on how to fund a pipe dream!

My wife and I have found our ideal new lifestyle - a holiday cottage letting business. The place we've seen consists of a large farmhouse (which we would live in), 4 holiday cottages and lots of land.

The price is around £1million - so just wandered what (if any) options there would be to fund such a purchase with relatively little deposit (approx £100k if we sold our house). We would eventually give up our jobs and run this full time, but initially I could keep my job (£40-£50k) and my wife run the cottage business if it would help with any funding.

I guess I know the answer already (we wouldn't be able to Gt a residential mortgage for £1 million), but wandered if there's any lenders who would be willing to lend such an amount considering it's for a business rather than residential.

Thanks in advance.
Simon

[Birkin1932]

I'd buy the cottage (& land) as a dwelling with a 95% mortgage and the holiday lets individually as BTL's

loads of pitfalls doing it though, professional advice is needed from an accountant and a solicitor

I think personally you are well underfunded by a big margin

[simon-spcix]

Thanks for the reply.

After talking to my mother, she could be tempted to join us. This potentially means we would have circa 300-350k to put down - which might make it more achievable?

I will speak to our mortgage broker in the morning and see what he suggests.