- Client: British National & Resident
- Property: 5-bedroom detached house
- Property value: £1,500,000
- Loan amount: £900,000
- LTV: 60%
Enness was approached by a British client who had recently sold their business and was looking to purchase a new family home. The client had received an initial payment from the sale, with further payments due over the following three years, subject to the ongoing performance of the business. They had also remained with the company as an employee following the sale, with a minimum three-year employment arrangement in place.
The client had sufficient capital from the initial business sale to purchase the £1.5 million property without financing. However, they had longer-term plans to build a portfolio of renovation and rental properties and wanted to preserve some of their capital for these future investments.
This created a more unusual lending scenario. The client needed a lender that would be comfortable with the income generated from the business sale and consider the future payments when assessing affordability. They also wanted the flexibility to refinance their new home within six months of ownership in order to release capital for the next investment.
Rather than relying solely on the client’s new employed income, Enness approached lenders that could take a broader view of the overall financial position, including the proceeds from the business sale and the future contractual payments. This was particularly important because the client’s employed income alone would have supported borrowing of only around £275,000.
We secured a 60% LTV mortgage against the property, with an interest-only structure and the flexibility required for the client’s wider investment plans. The lender also agreed to a simultaneous completion alongside the purchase of the investment property for which the additional funds were being raised.
The result was a mortgage structure that reflected the client’s actual financial position rather than simply their current salary. It also gave them greater flexibility to move forward with their plans to renovate and let further properties while retaining access to the capital generated from the business sale.
This case demonstrates the value of taking a holistic approach to complex income. Where a borrower’s wealth comes from a business sale, deferred consideration or other non-standard sources, the right lender may be able to consider the wider circumstances rather than relying solely on conventional salary-based affordability.
Enness specialises in arranging complex mortgages for entrepreneurs, business owners, self-employed individuals and clients with unconventional income structures. If your circumstances do not fit a standard lending model, our team can assess your position and explore the most appropriate finance options available.
Risk Warning:
Borrowing secured against property carries risk. If you do not keep up with mortgage repayments, you could lose your property. Interest rates and other costs may change depending on the mortgage product and lender terms.
Disclaimer:
This case study is for illustrative purposes only and does not constitute financial, legal or tax advice. Finance is subject to status, affordability, underwriting and lender criteria. Terms and availability will vary depending on individual circumstances.
Information contained in our case studies is for market and illustrative purposes only. In some cases, these may be made up of multiple cases and are for illustrative purposes only.
Some case studies are made up of enquiries that have come into the business, not all business completes, and the posting of a case study does not represent a completed piece of business.
Property values can fall as well as rise, and you may not get back the amount originally invested. Property investments can be illiquid and may take time to sell. Where borrowing is used, your property may be repossessed if you do not keep up repayments on a mortgage or other loan secured against it.
