Client purchasing a hotel during a UK lockdown
- LTV: 64%
- Loan Amount: £7,500,000
- Product: Commercial
We completed a commercial mortgage for a client who was looking to purchase an established hotel worth £11.9 million during the middle of lockdown.
The family are hoteliers and contacted to assist them with their purchase. They needed to find a lender who could move quickly during a time when most lenders did not have appetite for funding commercial assets in the hospitality sector.
Challenges facing borrowers
The enquiry was initially sent during one of the lockdowns and was heavily time sensitive. The client needed to move quickly due to the property being off market.
As a result of the pandemic, the hotel was not open for business. Paired with the property being an asset situated in the hospitality industry during lockdown, the sector & purchase of property was deemed high risk for lenders.
Loans Arena Solution
We were able to successfully get the mortgage agreed for £7.5 million & complete the transaction for the client, despite all the challenges above.
With strong/established lender relationships in place we were able to find the right mortgage lender from the wide range of funders who we work with. Whilst many mainstream mortgage providers had restricted their criteria in this space, we were able to successfully complete this transaction within the allocated timeline.
Whether you have a complex case or looking for advice for your next commercial mortgage, speak to one of our mortgage advisors today.