£3 Million Remortgage and Capital Raise in Scotland

MORTGAGE BROKER

Guy Jones

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Key details

• Clients: UK National and Resident
• Property type: 5-bed detached house
• Properties values: Total £3,000,000
• Loan: £2,400,000
• LTV: 80%

In this case, Enness was approached by a client looking to purchase a former boutique hotel in Scotland for £2.15m to let out on a short-term let basis using the projected income of £150,000 for affordability but with the ultimate intention to convert it back to a family home within 5-10 years. The client was a successful property developer with significant but sporadic income, mainly in the form of capital gains.

The challenge with this scenario was that the target property is a Grade A listed, 10-bed hotel, and the client wanted to let it on Airbnb. The combination of all three elements meant that a lot of lenders deemed the property was outside their risk appetite despite being in a sought-after area of Scotland.

Enness were able to look at the client's wider wealth and identified they could raise the whole purchase price against the client's unencumbered primary residence valued at £3m. This avoided the limitations imposed by borrowing on the hotel by lenders and allowed borrowing at cheaper residential rates. Enness were able to find a lender who could lend up to 80% LTV with 75% on an interest-only basis, which kept the monthly payments lower, as well as using the client's last two years' accounts from his business to assess affordability.

Enness has access to over 500 lenders, so when one scenario proves to be too expensive or difficult, we can leverage our network of lenders to find alternatives that still achieve the client's desired objectives.