Background
Our client had agreed to purchase a converted farm for £400,000, offering far more than a standard buy-to-let investment.
The property included two three-bedroom properties on a single title, two barns and a large area of land. The plan was to live in one of the properties, run the second as an Airbnb through a new limited company, and use the barns for storage.
With a £115,000 deposit already in place, the client needed £285,000 in borrowing. However, the property's unusual setup meant it didn't fit the criteria of many mainstream lenders.
Challenge
This wasn't a straightforward buy-to-let purchase.
The property combined residential use, a planned holiday let and additional outbuildings, all held on a single deed. The finance needed to support both the client's immediate purchase and their longer-term investment plans.
The solution had to:
Secure finance for a mixed-use property on a single title.
Support both residential and holiday let use.
Consider a new limited company for the Airbnb business.
Provide a borrowing solution that worked with the client's future plans for the site.
Solution
We secured a £260,000 mortgage, allowing the client to move forward with the purchase while keeping the finance aligned with their investment strategy.
Rather than treating the property as a standard buy-to-let, we sourced a lender comfortable with the property's mixed-use nature and future income plans.
This gave the client the flexibility to live in one property, establish the Airbnb business separately through a new limited company, and make full use of the barns and surrounding land.
Outcome
The client successfully secured the finance needed to purchase the converted farm and move ahead with their plans.
By finding the right lender, they were able to:
Purchase a unique mixed-use property that fell outside standard lending criteria.
Secure a £260,000 mortgage towards the purchase.
Keep one property as their home while creating an additional income stream through a holiday let.
Set up the Airbnb business through a new limited company.
Make full use of the barns and land as part of the overall investment.
This case shows that unusual properties don't always need unusual compromises. With the right lender, mixed-use properties with residential and holiday let plans can still secure competitive finance.
