I would like to run a small bed and breakfast on an occasional basis. (2 or 3 bedrooms maximum). If the rest of the house is my residence, do I need to apply for a commerical mortgage or can I have a residential mortgage? I will be buying a new property for this purpose as my present property does not have ensuite bedrooms
Ive just purchased an existing Guesthouse which required a commercial mortgage, but the bank would only sanction the money after reveiwing 3yrs accounts and my own buisiness plan. The other thing to look at is they will only a maximum of 70%. Some indipendent mortgage companies will only lend 50%, my advise there would only use a bank. While viewing several guesthouses i came across a couple that brought their house and converted it to a guesthouse, and after having all the work completed they then informed the various banks and insurance people of what they had done. I belive their mortgage hasnt changed, just the extra cost of insurances and taxes. Good luck with your search, we are just waiting for a date to move and very excited about it.
Bed and Breakfast – what is the best mortgage to take out?
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yummmy bed and breakfast i would like some frnech toast with oj for starters and then we work mon eggs and sausages and oiweeee omlettte yum now im hungyry
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Ive just purchased an existing Guesthouse which required a commercial mortgage, but the bank would only sanction the money after reveiwing 3yrs accounts and my own buisiness plan. The other thing to look at is they will only a maximum of 70%. Some indipendent mortgage companies will only lend 50%, my advise there would only use a bank. While viewing several guesthouses i came across a couple that brought their house and converted it to a guesthouse, and after having all the work completed they then informed the various banks and insurance people of what they had done. I belive their mortgage hasnt changed, just the extra cost of insurances and taxes. Good luck with your search, we are just waiting for a date to move and very excited about it.
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I run a bed and breakfast. I’m pretty sure you need a commercial mortgage but then you can have repayment holidays eg when its quiet in winter. Also, you contact the council and you pay reduced council tax for the section of the property that is a business. My mortgage is with a bank (Nat West)
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