Hotel Refinance, Market Value

The challenges

1. Other brokers capped at vacant possession value. Every route previously explored valued the hotel as if it were empty, rather than as an operating business, significantly limiting how much could be borrowed against it.
2. Needing an exception to standard policy. Lending against market value rather than vacant possession value isn’t the default position for most lenders, so achieving it meant securing a genuine exception to standard policy.
3. Demonstrating a strong enough borrowing profile. Making the case for that exception depended on presenting a comprehensive, credible picture of the client’s businesses, not just the one hotel being refinanced.

The solution

The applicant’s strength, combined with our strategic lender partnerships, allowed us to achieve an exception to policy, securing borrowing against market value (MV1) rather than vacant possession value. That distinction alone materially changed what the client could raise against the asset.

On top of that, with Mortgage Lane sitting on the Interbay Select panel, we secured preferential hotel financing rates versus what’s available on the general market, rates that wouldn’t have been accessible through a standard broker relationship.

The outcome

The client secured £2.3m in refinancing against market value, on an exclusive rate, with the capital raised used to fund his onward hotel purchase.

Frequently asked questions