Those seeking to use their pension pot to get out of the rat race and build a new lifestyle business are being steered to the thriving South West Bed & Breakfast sector.
Property specialists Colliers International say the new generation of Bed and Breakfasts make the ideal choice for investors – and also provide an ideal home life for new owners coming in to the hospitality business.
Hotels Director Simon Wells said: “With high occupancies, smart and stylish guest houses are increasingly being seen as great value for money with particular appeal to pension potters looking for an investment opportunity before taking full-time retirement - as well as a change of lifestyle.”
Hugh Caven of Walbrook Commercial Finance agreed, adding: “I have recently put together a lending package for a B&B in Gloucestershire. The structure isn’t that different to putting in a cash deposit, but it does require professional advice.
“The borrower was the Pension (SIPP) and the clients bought the goodwill from their own cash resources. My clients then took a lease from their SIPP, so all rent is paid to the SIPP, the SIPP pays the mortgage, and the SIPP retains its profits from the rent to pay back the loan and upon sale in the future.
“Most should be able to convert a current pension pot into a SIPP which you would then be able to use.”
Simon Wells said the Aquae Sulis on Newbridge Road in Bath ticked all the boxes for people looking to invest pensions funds freed up by the Government’s relaxation of pension regulations or by using their pension to buy with a SIPP.
He said: “The handsome Bed and Breakfast, which occupies a prominent position on one of the main routes into the Georgian hotspot, has recently been presented with a Silver Award for the high quality of the accommodation and customer service by EnjoyEngland.com.”
Simon said: “With turnover and profits on the increase, the Aquae Sulis appeals to both hearts and minds. Furnished in the classical English style which tourists love, the Bed and Breakfast has plenty of space for guests to relax and best of all there is a garden flat for the owner-operators’ use, though the property is currently run by staff.”
Simon, who sold the Ayrlington, Kennard and Griffin in the city in the last year 18 months, said Bath had enjoyed another bumper summer.
“Its status as a UNESCO World Heritage Site makes it a must visit destination on the UK tourist trail and adding to the many attractions are the rugby, Christmas Market, top class theatre and shopping, ensuring visitor levels remain high throughout the year.”
The distinctive, 14-bedroom Edwardian property is on the market for the first time in almost 30 years at £1.6m freehold.
For further details contact Simon Wells, Director, Hotels Colliers International, on Bristol 0117 917 2000. Hugh Caven of Walbrook Commercial Finance can be contacted on 01892-512800