The King's

Case Study: The King's Vendor
Motivation • Deferment • Portfolio Finance
A working hospitality asset with a human problem—and how structure created opportunity.
The Asset
Trading hospitality property
14 en-suite letting rooms
Fully operational B&B
2-bed owner's apartment
This was not a development. It was a working asset with a human problem.
The Vendor Situation
Owned and operated for 20 years
Husband suffering from late-stage dementia
The building had become unmanageable
Onward purchase agreed: £450,000 bungalow (cash)
Their priority was not price. It was certainty and timing.
Why the Deal Existed
The property had:
Failed at auction
Been re-marketed post-COVID
Attracted complex creative-finance offers
But those offers:
Delayed certainty
Added stress
Didn't solve the real problem
Motivation created the opportunity.
The Structure
Agreed price: £765,000
Vendor received the capital needed to move
Balance structured as vendor deferment
Formal loan note in place
Interest serviced from trading cashflow
Price followed structure.
Where the Capital Came From
Exiting the Phoenix Club development
Portfolio refinance agreed with Lloyds
Equity rolled forward into the purchase
Vendor deferment bridged the gap
Additional cash required: ~£50,000
Finance followed clarity.
The Income
Room Income
Rooms rent between £550–£700 pcm
Average used: £650 pcm
14 rooms × £650 = £9,100 pcm
Apartment Income
2-bed apartment: £1,300 pcm
Total income: ~£10,400 pcm
Annualised: ~£124,800
No refurb. No repositioning. Just stabilisation.
The Outcome
Recently revalued at £1.1 million
Multiple strategic options now available:
Planning for micro-apartments
High-end HMO
Sale or long-term hold
Structure created optionality.
The Lesson
This deal didn't start with money.
It started with:
understanding motivation
designing structure
letting finance follow clarity
This is how real property deals are done.