A previous Enness client approached the firm seeking capital for substantial improvements to their home. With the existing mortgage approaching the end of its product term, the timing provided an opportunity to refinance while raising additional funds for the planned works.
The £1.5 million residence was set within approximately 40 acres of land in Totnes, Devon. The borrower required lending at up to 75% loan-to-value, with a significant proportion structured on an interest-only basis. The intended repayment strategy was the eventual sale of the residence.
The borrower was a majority owner of a public limited company, meaning a significant proportion of their wealth was held within the business rather than as readily accessible personal income. This presented an additional consideration when assessing affordability and the proposed repayment structure.
The Grade II listed building and surrounding land also required careful assessment. With substantial refurbishment planned, the lender needed to understand the scope of the works and have sufficient confidence in the underlying security and proposed exit strategy.
OUR SOLUTION
Enness presented the borrower’s wider financial position to a private lender, including their shareholding and other assets. This allowed the application to be assessed on a broader basis rather than relying solely on conventional personal income.
Detailed information about the refurbishment was provided, giving the lender greater visibility over the proposed works and their impact on the asset. The future sale of the residence was established as the primary repayment strategy, subject to the lender’s assessment.
A 17-year mortgage was arranged, with 75% of the borrowing structured on an interest-only basis. The refinancing released additional capital for the improvements while allowing the borrower to retain ownership and proceed with the refurbishment programme.
This case demonstrates how bespoke mortgage structuring can assist borrowers whose wealth is concentrated in business interests and who require significant capital for property improvements. A broader assessment of assets, income and repayment strategy can provide financing options where standard lending criteria may be less suitable.
Disclaimer:
This case study is for illustrative purposes only and does not constitute financial, legal, tax or investment advice. Finance is subject to status, underwriting, affordability, property suitability and lender criteria. Terms, rates, LTVs and availability may vary depending on individual circumstances.
Risk Warning:
Your property may be repossessed if you do not keep up repayments on your mortgage or other borrowing secured against it. Property values can fall as well as rise.
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.
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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.
