Converted Pub - Ground-Floor Restaurant and Two Holiday Lets in Devon
£745,000 · 20 years · 6.80% fixed 5 yrs. An investor acquired a converted Devon pub now operating as a restaurant on the ground floor (let to a local restaurateur) with two self-contained holiday let apartments above.
The Client
Investor
The Challenge
An investor acquired a converted Devon pub now operating as a restaurant on the ground floor (let to a local restaurateur) with two self-contained holiday let apartments above. The three-way income mix - commercial lease, short-term residential holiday lets - required a lender comfortable with all three income types simultaneously.
Our Solution
Doulton sourced a specialist lender experienced in mixed-use hospitality assets. The restaurant tenant's three-year trading accounts were submitted. The holiday let income was evidenced through a local agency's comparable performance data. The property's rural Devon location, while somewhat niche, was supported by strong local tourism demand data.
The Outcome
Property purchased. Restaurant operating continuously. Holiday let apartments achieving 68% annual occupancy in year one. Combined income from all three sources: £72,400 gross per annum. Key highlights: Three-way income mix assessed by specialist lender; Restaurant accounts and holiday let comparables both submitted; Combined gross income £72,400 pa from all three sources.