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Guest house for sale in Ilfracombe

9 replies

good96 · 13/07/2024 20:00

What does everyone think to this? Do they remember it from Four in a bed?

uk.businessesforsale.com/uk/award-winning-guest-house-lovingly-restored.aspx

OP posts:
BG2015 · 14/07/2024 08:50

That's really lovely. Are you thinking of buying it.

Raveonette · 14/07/2024 09:01

That's lovely! Are you the seller?

OneForTheToad · 15/07/2024 06:29

Are they selling a house or a business there? £90k TURNOVER, what’s the PROFIT? A place like that will cost a lot in maintenance, heating, business rates etc, etc.
Now the Covid boom is over, I think the current owners have seen the iceberg.

DracoDormiensNumquamTittilandum · 15/07/2024 06:34

OneForTheToad · 15/07/2024 06:29

Are they selling a house or a business there? £90k TURNOVER, what’s the PROFIT? A place like that will cost a lot in maintenance, heating, business rates etc, etc.
Now the Covid boom is over, I think the current owners have seen the iceberg.

Ilfracombe continues to be very popular for holidays, I don't think there is an iceberg in north Devon TBH.
I think this place is lovely and I'd like to know why they only open it 7 months a year. It's odd to be selling after investing such a lot into it.

taxguru · 15/07/2024 07:46

That's a hobby not a business. No way will that make any money on just turnover of £90k. The owners won't be earning minimum wage on the time they'll have to spend. They're having to open restricted months to stay under the VAT threshold as they'd lose money if they opened more as VAT is on all income not just the amount over the threshold. If someone needed a mortgage to buy it, they'd be making a loss. Fine for someone with money to have a vanity project. Sadly typical of UK failing/loss making B&Bs as the VAT threshold kills them.

CombeBae · 15/07/2024 07:53

i live in Ilfracombe and know these guys. Lots of reasons why they’re selling. They bought a while ago so will be making a profit on the sale of the place. But you’re right it’s not profitable. There’s also the issue of the hundreds of homes that were snapped up here in the Covid boom as holiday lets. Lots of locals and non locals thought this was their way to making a fortune. Unfortunately over supply means lots of these people are now struggling to let and that has a knock on effect to the BnBs. House prices went up by 25% during that time and have now plummeted back down. Lots of (greedy?) people now struggling with big mortgages and properties that won’t let.

Their place is beautiful! They are passionate about heritage and doing things right. They’re nice people. I hope they sell for what they want.

LaPalmaLlama · 15/07/2024 09:38

I'd like to know why they only open it 7 months a year.

I'd imagine there's just not really a winter season that would give you high enough occupancy to make it worthwhile, and I think also in winter particularly, people often prefer a cottage. I live in Dorset and a lot of the hotels close from 1 October to 31 March (or easter, whichever earlier).

taxguru · 15/07/2024 17:15

LaPalmaLlama · 15/07/2024 09:38

I'd like to know why they only open it 7 months a year.

I'd imagine there's just not really a winter season that would give you high enough occupancy to make it worthwhile, and I think also in winter particularly, people often prefer a cottage. I live in Dorset and a lot of the hotels close from 1 October to 31 March (or easter, whichever earlier).

It said in the listing it was to avoid VAT registration, which is very common for small B&Bs, small shops/cafes, etc. Sales (not profit) over £90k p.a. and you lose a huge chunk of it to HMRC in VAT, so you actually end up worse off if you grew your turnover from £90k to £100k, hence why huge numbers of such small businesses close for winter, or reduce opening hours, or have several one or two weeks closures, or in the case of B&Bs actually close a floor or some rooms and simply don't use them - all different ways to stay under £90k. You really have to power through the threshold to around £110k + to start being better off than you were at £90k, and only then if you don't have to take on extra overheads such as more staff etc. One of my clients is a 9 bedroom B&B and he decided to "go for it" after years of shutting 4 months per year to stay under the threshold - he's got it to £120k but now has to employ someone to do the cleaning and make breakfasts, so he's only just now making more profit than he did when he kept it under the VAT threshold which was £85k up until recently - that's after two years of being worse off as he tried to power through to a level where it was worthwhile opening all year and opening all rentable rooms!

good96 · 02/08/2024 21:21

CombeBae · 15/07/2024 07:53

i live in Ilfracombe and know these guys. Lots of reasons why they’re selling. They bought a while ago so will be making a profit on the sale of the place. But you’re right it’s not profitable. There’s also the issue of the hundreds of homes that were snapped up here in the Covid boom as holiday lets. Lots of locals and non locals thought this was their way to making a fortune. Unfortunately over supply means lots of these people are now struggling to let and that has a knock on effect to the BnBs. House prices went up by 25% during that time and have now plummeted back down. Lots of (greedy?) people now struggling with big mortgages and properties that won’t let.

Their place is beautiful! They are passionate about heritage and doing things right. They’re nice people. I hope they sell for what they want.

Lewis and James are passionate at what they do.
They have been great ambassadors for Ilfracombe for sure. Be interested to see if they take on another project in the town to renovate - but can totally understand if they don’t. Although Ilfracombe is a touristy town - there isn’t much investment in it at all and also the place is saturated with holiday lets, B&Bs and hotels as well as the holiday park.

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