Finance
Today’s sale price offers a 10% discount on market value giving you instant equity. The all-inclusive cost of the unit, fully operational and ready for paying guests is £237,000 + VAT. Broken down this includes the property itself at £212,000+VAT and its hotel grade luxury furnishings purchased on your behalf for £25,000+VAT.
As mentioned above, this price offers a generous discount to market value which has recently come in at £235,000. The reduced price is offered so that you benefit from the property falling inside the lower stamp duty threshold.
Geared Returns
If you took a 70% LTV interest only mortgage at a fixed rate of 5% requiring a deposit of £71,100, your monthly net return on investment would be a minimum of £494. That’s the equivalent of an 8.34% savings rate on a deposit of £71,100. At the end of the mortgage term or at the 5 year mark, we guarantee to buy the property back from you at the price you paid. If you wish to explore finance you may like to contact one of our mortgage brokers who are familiar with the project.
VAT
As these units are deemed by HMRC to be commercial properties, they are subject to a VAT charge of £37,100 which is reclaimable after payment. As part of the hotel's management service all further VAT submissions can be handled by the vendors on your behalf, making this a true armchair investment.
