Commercial Mortgage + Bridging

£1.4m

£1.4m Hotel Purchase — First-Time Hoteliers

Hospitality — New Operators

Facility Size

£1.4m

Transaction Type

Commercial Mortgage + Bridging

Client Type

Hospitality — New Operators

Sector

Business Finance

Structure

We built a strong business plan supported by three years of trading accounts and approached...

Outcome

The purchase completed successfully, and the bridging facility was redeemed two months later when the...

01

Client Situation

A couple, supported by family, were leaving established London careers to buy and run a hotel in Dorset. Their plan relied on selling two properties to fund the purchase — but one sale was delayed, leaving a short-term gap between commitment and completion.

02

The Challenge

As first-time hotel operators, they needed a lender that would back a well-evidenced business plan rather than a prior hotel-ownership record — and a way to bridge the delayed property sale so the purchase could complete on time.

03

Lender Considerations

Hotel lending weighs the strength of the business plan and projected trading, the operators' relevant experience, and the security position. With one sale delayed, the lender also needed comfort on the interim funding and a clear, near-term exit for it.

04

Structure Used

We built a strong business plan supported by three years of trading accounts and approached four lenders. We secured a primary commercial mortgage at a 70% advance (a rate of 3.25% above bank base rate), plus a bridging facility secured against the unsold flat to cover the timing gap.

05

Outcome

The purchase completed successfully, and the bridging facility was redeemed two months later when the flat sold — exactly as planned.

06

Key Lessons

A credible business plan can carry a first-time operator where an ownership track record is absent.

Bridging alongside a term mortgage can solve a timing gap without derailing the main deal.

Presenting trading history clearly gives a lender the confidence to back a new venture.

Client details have been anonymised. Figures and rates describe a completed transaction at the time and are not indicative of current terms. All finance is subject to status, lender criteria and individual circumstances. Past outcomes do not guarantee future results.

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