Torquay is a seaside town in Devon and part of the Torbay unitary authority area, on the north of Tor Bay beside Paignton and across the water from Brixham. Its built-up area had 52,037 people at the 2021 census. The town's economy was first based on fishing and farming, but in the early 19th century it became a fashionable resort, and its mild climate earned it the nickname the English Riviera. Agatha Christie was born here.
We are a broker and never lend. We arrange business mortgages for limited companies buying or refinancing the premises they trade from in Torquay. This is commercial finance for a trading business's own building, not a residential mortgage.
What premises do Torquay hospitality and retail firms buy with an owner-occupier mortgage?
Tourism is the backbone of the town. Wikipedia lists attractions including Kents Cavern, Torquay Museum, the oldest in Devon, the Babbacombe Model Village and Theatre, the Princess Theatre and the English Riviera Wheel. Around them sit hotels, guest houses, restaurants, cafés and seafront shops, which make up most of the buildings that local companies buy.
Lenders treat a hotel or restaurant as a trading business: they value the building partly on the trade inside, and they read the accounts closely for how the business performs outside the summer. Indicative rates are 7.0 to 9.0% a year, subject to status, accounts and valuation, against 6.0 to 7.5% for a standard owner-occupier such as a retailer or professional firm. Torquay also has a history of potteries making wares for tourists and high-end retail, and today's independent makers and studios buy small workshops.
Our page on owner-occupier mortgages explains the basics, and buildings with a flat above are covered on our semi-commercial premises page.
Fishing, hotels and care homes: the Torbay business base
ONS UK Business Counts 2026, local units. Figures are for the Torbay local authority area.
Show as a table
| Sector | Businesses | Torquay share | UK share |
|---|---|---|---|
| Construction and building trades | 775 | 15.7% | 12.5% |
| Retail | 600 | 12.2% | 9.4% |
| Professional, scientific and technical | 490 | 9.9% | 13.9% |
| Restaurants, cafes and pubs | 445 | 9% | 6.2% |
| Health and social care | 370 | 7.5% | 5.6% |
| Business support services | 355 | 7.2% | 8.1% |
| Property | 210 | 4.3% | 4.5% |
| Personal and other services | 210 | 4.3% | 4.1% |
| Manufacturing and engineering | 195 | 4% | 4.3% |
- 12.4xfishing and aquaculture75 businesses
- 3.5xhotels and accommodation145 businesses
- 2.1xresidential care115 businesses
- 1.4xrestaurants, cafes and pubs445 businesses
A figure of 2.0x means the trade makes up twice the share of local businesses that it does across the UK.
Torbay's 4,960 business units include a fishing cluster at 12.41 times the UK share, centred on Brixham harbour. Accommodation runs at 3.55 times and residential care homes at 2.14 times the national rate. Restaurants, cafes and pubs make up 9% of firms. Hotels, guest houses and care homes are trading businesses, so purchase and refinance are underwritten on occupancy and income, typically in the 7.0 to 9.0% band, with seasonality in the accounts a key question.
How do the A380 and the railway affect commercial property loans in Torquay, Devon?
The A380 links Torquay to the A38 and the M5 at Exeter, running round the outskirts of the town. The South Devon Highway section near Kingskerswell, completed in 2015, added a new junction with the Torbay Ring Road. The A3022 leads into the town as Riviera Way, and the A379 runs past the harbour to Babbacombe and St Marychurch. Torquay station sits near the sea by Torre Abbey Sands, with Torre station a little inland.
For a lender, a hotel on the seafront or close to the station has a clear trading location. Workshops and trade units on the A380 side of town are easier to re-let to non-tourism businesses, which helps the valuation.
Torbay's shops down, hospitality buildings up
Valuation Office Agency, non-domestic rating stock of properties, March 2026. Figures for the Torbay council area. Average rateable value is the VOA's estimate of annual rent, not a sale price.
- Industrial and warehouse930properties on the rating listUp 1.1% since 2016Average rateable value £17,300factories, workshops, warehouses and trade units
- Offices520properties on the rating listUp 6.1% since 2016Average rateable value £11,700offices, including converted buildings
- Shops and retail1,690properties on the rating listDown 7.1% since 2016Average rateable value £18,600shops, showrooms and retail warehouses
- Other commercial2,300properties on the rating listUp 27.8% since 2016Average rateable value £18,900pubs, hotels, surgeries, nurseries, garages and more
Torbay estates, from Yalberton to Babbacombe
Named estates and parks listed on Google Maps near Torquay, October 2026. Listed to show where premises trade locally; we have no connection with the owners or agents.
- 2 Babbacombe Business ParkTorquay TQ1 3SZ
- Oak Tree Business ParkKingskerswell, Newton Abbot TQ12 5GJ
- Trojan Industrial EstatePaignton TQ4 7EP
- Miglo Industrial EstatePaignton TQ4 7QW
- Baytor Industrial EstatePaignton TQ4 7QJ
- Yalberton Industrial EstatePaignton TQ4 7QR
- Yalberton Tor Industrial EstatePaignton TQ4 7QN
- Rogers Industrial EstatePaignton TQ4 7PJ
- Rodgers Industrial EstatePaignton TQ4 7QG
- Decoy Industrial EstateNewton Abbot TQ12 5ND
- Sterling House Decoy Industrial EstateNewton Abbot TQ12 5ND
- Homeside House Business CentreDecoy Industrial Estate, Silverhills Rd, Newton Abbot TQ12 5YZ
Shop numbers in Torbay fell 7.1% since 2016 to 1,690, while other property, which includes hotels and leisure, rose 27.8% to 2,300. Industrial units barely moved, up 1.1%. Values are low across the board, with an average rateable value of £17,800. For a hotelier, more comparable buildings help a valuer, though trading accounts still decide the loan.
What cash does premises finance in Torquay, England need?
Lenders active in owner-occupier lending typically advance 70 to 75% of the price or valuation, whichever is lower, over 5 to 25 years, with arrangement fees of about 1 to 2%, subject to status, accounts and valuation.
SDLT applies at HMRC's non-residential rates: 0% up to £150,000, 2% from £150,001 to £250,000 and 5% above £250,000 (rates as at October 2026; check the current rates before you buy).
Illustrative example. A restaurant company buys a freehold building near the harbour for £400,000. A 75% loan is £300,000 and the deposit £100,000; SDLT is £9,500, so it needs about £109,500 before fees. Hospitality lenders sometimes cap the loan lower, so a bigger deposit may be needed. See the Devon business mortgages page for nearby towns.
Commercial lending to a limited company is unregulated and falls outside the FCA's regulated mortgage perimeter. Where a deal would be regulated, for example lending to a sole trader or individual, or a property where the borrower or a close family member will live in part of it, we refer it to an appropriately authorised firm.
Business districts across Torquay
Harbour and seafront
The harbour, marina, Victorian Pavilion and Princess Gardens form the heart of the visitor economy. Restaurants, bars, hotels and gift shops dominate, and many buildings are period or listed, so the lender's surveyor will report carefully on condition.
Babbacombe and St Marychurch
The former borough of St Marychurch was absorbed into Torquay in 1900, taking in Babbacombe, Plainmoor and Watcombe. Babbacombe's model village, theatre and cliff railway draw visitors, and the area has its own hotels, cafés and local shopping streets.
Wellswood
Part of the town's historic core, Wellswood was built up by wealthy Victorians with large Italianate villas. Some of those villas now operate as hotels and guest houses, and the local parade suits small shops and professional offices.
Torre and Upton
Inland from the seafront, Torre has its own station on the road to Newton Abbot, and Upton is part of the old town core. These districts hold everyday businesses such as clinics, garages, trade suppliers and takeaways, which tend to trade year-round.
Chelston and Livermead
Annexed from the Cockington estate in 1900, Chelston and Livermead sit on the western side towards Paignton. The Livermead seafront has hotels, while Chelston's local streets suit service businesses serving residents.
