Serviced Accommodation: Funding Four Luxury Flats

The situation

Our clients transformed a run-down seaside property into four luxury, self-contained flats, each intended to operate as serviced accommodation for holidaymakers and contractors.



The challenge

The limited company had five applicants. Many lenders prefer to consider serviced accommodation on a single-unit basis, while the property contained multiple self-contained units. All applicants were also first-time landlords and property investors.



Finding a way forward

We approached the market with the full circumstances of the project in mind and identified a commercial lender comfortable with the structure, multiple units and applicants' experience.



The outcome

Finance was secured at 75% LTV on an interest-only basis. The property is now operational and the clients have already started planning their next project.



A lack of previous property experience doesn't necessarily prevent a good project from being financed. It means the proposition needs to be presented to the right lender.