---
title: "Hotel Refinance, Market Value"
description: "See how an experienced hotelier secured £2.3m in refinancing against market value, with an exclusive rate to fund a further hotel purchase."
url: "https://mortgagelane.com/case-studies/hotel-refinance-market-value"
site: "Mortgage Lane"
collection: "case-studies"
date: "2026-09-25"
author: "Seren Norton"
category: "Case study"
reviewed: "2026-10-15"
reading_time: "3 min"
byline: "Seren Norton"
author_credentials: "CeMAP · FCA authorised firm"
language: "en-GB"
robots: "index,follow"
---

# Hotel Refinance, Market Value

See how an experienced hotelier secured £2.3m in refinancing against market value, with an exclusive rate to fund a further hotel purchase.

See how an experienced hotelier secured £2.3m in refinancing against market value, with an exclusive rate to fund a further hotel purchase.

## Case study

Speak to a Mortgage Lane adviser about your options.

## In short

Mortgage Lane secured £2.3m of hotel refinancing for an experienced hotelier, borrowing against market value (MV1) rather than vacant possession value, on an exclusive rate.

The lender agreed an exception to policy, and Mortgage Lane’s place on the Interbay Select panel gave access to preferential hotel financing rates. The capital raised was used to fund the client’s onward hotel purchase.

## Case overview

*Case overview*

| Detail | Summary |
| --- | --- |
| Property type | Hotel |
| Transaction | Refinance |
| Loan amount | £2,300,000 |
| Valuation basis | Market value (MV1), not vacant possession value |
| Lender access | Interbay Select panel |
| Purpose | Capital raised to fund a further hotel purchase |
| Outcome | Exception to policy secured, preferential rate achieved |

## 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](https://mortgagelane.com/mortgages/hotel-mortgages) 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

**What’s the difference between vacant possession value and market value for a hotel?**

Vacant possession value assesses the property as if it were empty, with no trading business attached, a more conservative figure. Market value reflects the hotel as a going concern, including its trading income, and can materially increase how much can be borrowed against it, though not every lender will assess a case on that basis.

**Can refinancing a hotel raise capital to fund a further purchase?**

Yes. Where sufficient equity exists in an existing hotel, refinancing can release capital that’s then used towards acquiring another property, subject to the lender’s assessment of the borrower’s overall business strength. [Hotel loans](https://mortgagelane.com/mortgages/hotel-mortgages) structured this way are common among experienced operators expanding their portfolio.

> [!IMPORTANT]
> Further reading
>
> Full lending criteria for hotel finance are on our [hotel mortgage](https://mortgagelane.com/mortgages/hotel-mortgages) page.

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## Been told you can only borrow against vacant possession value?

As an experienced operator, your trading business may support considerably more than that valuation suggests.

Published: 2026-09-25

Last reviewed: 2026-10-15

Source: https://mortgagelane.com/case-studies/hotel-refinance-market-value