The Covid Legacy
Holiday complex mortgage expert, Philip Meek, discusses how Covid has shaped and helped to boost the leisure sector within the West Country. T hankfully, covid seems to be leaving our vocabulary; however, we holiday letting units on one title, multiple unit properties across split titles, lending to limited companies, and more.
years, trading accounts impacted by Covid and rapidly evolving lender requirements and base rate movement, to name a few. Consequently, to ensure an application has the very best chance of success,we have had to adapt how we structure proposals to lenders, who now look
have seen indications that a positive legacy remains within the leisure sector here in the South West. Since 2021, we have witnessed a significant increase in lifestyle choice decisions with many clients deciding to leave behind memories of lockdown in their city apartments or town houses and up-sticks to purchase a holiday complex, guesthouse or hotel in the South West. The idea of living in a beautiful part of the country, serving and making happy holidaymakers, is seemingly irresistible to a multitude of people and the increase in working from home has allowed many the option to take a salary with them. It is a pleasure to work with this type of client as they are incredibly motivated, engaged, and excited about their new direction. Businesses in the sector struggled during lockdowns, but once restrictions were lifted sufficiently to allow domestic travel, most experienced an uplift in occupancy rates, many achieving 100% each month with profits higher than pre-pandemic. Our Devon based team of Commercial and Residential advisers have had many challenges to contend with in recent
As a result of Covid, domestic tourism in the South West experienced a raising of its profile with many visitors
continuing to investigate holiday options closer to
far more holistically at potential borrowers.
home, initially due to foreign travel restrictions and latterly because they’ve developed an appetite to explore and discover their own country. Where have you been in recent years and how difficult was it to find somewhere to book? There are clearly challenges ahead for the whole economy and although foreign travel is reaching previous levels, there seems to be a recognition amongst niche leisure sector lenders that, despite experiencing a wobble of earthquake like
“The relationships we have built with lenders over the last 25 years, often enable Philip Meek Commercial to achieve better terms than a client might by approaching a lender directly.”
The benefit of using an experienced broker with a finger on the pulse of lender’s appetites cannot be overstated. A well- prepared and strong presentation to a lender is not only more likely to secure funds but also improve the interest rate and terms offered. The relationships we have built with lenders over the last 25 years, often enable Philip Meek Commercial to achieve better terms than a client might by approaching a
lender directly. Lenders recognise and appreciate a good broker’s understanding of the market and their requirements for a well presented, and fully packaged, application for consideration. Additionally, we have access to niche lenders who will consider properties typical of the region that others will not, including multiple
proportions three years ago, this is at least one sector that has the potential to benefit from the coronavirus legacy.
For more information visit philipmeek. co.uk
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