Holiday Let Above a Hotel: Securing a Limited Company Mortgage at 65% LTV
The latest industry news and guides from Active Mortgages.
The latest industry news and guides from Active Mortgages.
A client approached us looking to purchase a flat above a hotel and let it as a holiday rental through their limited company. They had a clear investment strategy but needed guidance on how to structure the mortgage correctly. Traditional lenders had already turned them away due to the property’s location and intended use. Our goal was to find a lender that understood both holiday lets and limited company structures.
This case involved multiple layers of complexity – a residential unit above commercial premises, intended for short- term letting, under a company. Many lenders exclude this type of setup due to perceived risk. There were no income or credit issues, but most providers couldn’t offer a suitable solution. The client needed specialist support to avoid further delays.
We sourced a fixed-rate mortgage at 5.39% with a specialist lender comfortable with holiday lets and non-standard property types. We provided clear projections, addressed lender concerns about the commercial element, and ensured the structure met company lending criteria. The deal was packaged for smooth underwriting, avoiding unnecessary back-and-forth. Our proactive approach gave the client clarity and control.
The mortgage was secured at 65% loan-to-value with no excessive fees or restrictions. The client was able to proceed with the purchase and begin letting the property as planned. Our knowledge of complex lending criteria made the process smooth from start to finish. This case highlights the value of specialist advice for investors with unique property goals.
This case shows how specialist knowledge makes all the difference when standard lenders say no. Holiday lets under a limited company, especially above commercial premises, aren’t straightforward – but they’re possible with the right advice. Many investors miss out simply because they’re told it can’t be done. We proved it can.
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