We were approached by an experienced landlord who was looking to go into business with her two sons.
Using a newly formed limited company, they planned to purchase a large Cornish holiday park made up of apartments, bungalows, cottages and leisure facilities.
The family had raised the necessary deposit by refinancing an unencumbered buy to let property owned by the mother.
Although between them the clients had never owned a holiday park before, they each either had property or leisure sector experience.
One son had previously owned a 35-bed hotel and has an extensive background in property management and leisure tourism. The other son is employed as a manager within the service industry.
We negotiated with a high street bank which is known for lending to leisure sector businesses.
The bank’s underwriters agreed that the family’s combined experience, available funds and business plan made a strong proposal and so offered terms.
The purchase is due to complete at the end of the current holiday season.
Property value: £900,000
Loan amount: £600,000
Rate: Bank Rate + 2.95% tracker
Term: 5 years capital and interest (with 15 years’ amortisation)
Lender arrangement fee: 1.5% of loan amount (£9,000)
Completion date: October 2015
Consultant: Andy Elley
Consultant tel: 01732 471644