Does a BTL mortgage exist for property leased to a serviced apartment company?

by Readers Question

15:49 PM, 20th December 2015
About 3 years ago

Does a BTL mortgage exist for property leased to a serviced apartment company?

Make Text Bigger
Does a BTL mortgage exist for property leased to a serviced apartment company?

I’m looking to mortgage two apartments in a block that are all leased to a serviced apartment company. The block is effectively a hotel of sorts, although the block was built as a residential block in 2007, it has always been sub leased to the company. unicorn

Flats are owned by private individuals. The lease with the serviced apartment company has 8 years left of a 15 year lease. (Leasehold in Title is 117 years). They yield 12%.

The issue I’m having is BTL lenders condition that the property is Let on a AST (easy to flip if they need to repossess). Anyone any experience or solutions to refinancing such an investment?

The flats are in a limited company so any mortgage would be arranged on that basis.

Excellent site by the way, a good friend of mine introduced me to it, excellent source of information and like minded people.

Brilliant.

John



Comments

Neil Patterson

16:16 PM, 20th December 2015
About 3 years ago

Hi John,

I think you knew already that this is going to require more specialist lending.
To give you any sort of Idea I would need to get one of our brokers to go through a full fact find with you.
However anything is normally financeable dependent on security, risk and LTV. Serviced and hotel type apartments are more common than they used to be, but I haven't personal financed one myself.
If you would like us to look into it for you let me know 🙂 npatterson@property118.com

Puzzler

10:15 AM, 21st December 2015
About 3 years ago

You would need a commercial lender although there are some other lenders who will do it - an internet search should throw them up (Cumberland is one I think)

Dixie Dean

22:15 PM, 23rd December 2015
About 3 years ago

Thanks for the responses. I'm looking at commercial mortgage options.

Dixie.

Puzzler

9:20 AM, 21st February 2016
About 3 years ago

If you're still looking there is a number of small building societies - look under "holiday lets"

Paul Mahoney

19:35 PM, 21st February 2016
About 3 years ago

Hi Dixie

We have looked into this recently for one of our clients who bout 2 in Liverpool. Get in touch if you'd like us to help.

http://www.property118.com/member/?id=7077

Rob Spriggs

21:09 PM, 24th February 2016
About 3 years ago

Reply to the comment left by "Neil Patterson" at "20/12/2015 - 16:16":

I too, am in a similar situation with a Serviced Apartment dilemma if you don't mind me emailing you?
Kind regards,

Richard Roberts

12:46 PM, 25th February 2016
About 3 years ago

Reply to the comment left by "Paul Mahoney" at "21/02/2016 - 19:35":

I have found a possible location for a "Boutique Hotel and Restaurant" very near the Liverpool city centre L1. whole building available although need to talk to more experience developer, with some knowledge of hotel developments.

could you get in touch?

Thanks Rich


Leave Comments

Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.

Forgotten your password?

OR

BECOME A MEMBER

Change to Universal Credit rent arrears payments

The Landlords Union

Become a Member, it's FREE

Our mission is to facilitate the sharing of best practice amongst UK landlords, tenants and letting agents

Learn More