Many propety investors are surprised when they learn how serviced accommodation is actually valued for lending. Some lenders still rely on the bricks-and-mortar / vacant possession value – essentially, what the property is worth empty. But a smaller group of lenders take a commercial / income-based approach, using seasonal revenue modelling to assess monthly occupancy, nightly rates, operating costs and how income fluctuates throughout the year. The benefit? A commercial valuation can often be higher, which is great news if you're looking to release capital for your next project. My advice from the cases I worked on in 2025? 1. Prepare a robust forecast that shows best and worst case scenarios for occupancy rates. 2.Have the above rubber stamped by local agents. 3. Have a reputable managing agent to look after the day to day running of your property. 4. Ensure that your management accounts show history (where available) of gross and net income. 5. If you benefit from Sui Generis planning go all out! As a broker, I help clients understand which lenders use which method, and how to present strong occupancy forecasts and cash-flow data to maximise the chances of a favourable outcome. The good news is that several of the lenders I work with will consider a full commercial valuation. If you’re planning to refinance an HMO, MUFB or holiday-let portfolio that includes serviced accommodation, the right valuation approach can make all the difference. Feel free to message me or email sanjay@finances.house for more info! #PropertyInvestor #PortfolioLandlord #PropertyInvestmentUK #UKPropertyMarket #BuyToLetInvesting #PropertyStrategy #Refinance

Posted by Sanjay Majithia at 2025-12-06 18:28:06 UTC