Capital raise on £3.5million London property for a self-employed client

Key property figures:

• £3.5million property
• £2.5million remortgage amount
• 59% interest only
• 2-year term

The client:

I have worked with this client on a previous case and was therefore very pleased that he returned to utilise my service. He was self-employed as the director of his property development company and also had other businesses, meaning that he had a complex income structure.

The property:

My client had a luxurious West London property valued at £3.5million. He was looking to remortgage £2.5million, a remarkably large percentage of the property’s value.

What were they looking for?

He was looking to raise capital for a future purchase.

Why is it difficult?

As he is self-employed with an irregular income structure, this creates several hurdles for the remortgage process. Lenders can consider property developers to be a risk to work with as they are heavily exposed to the market, and incomes can fluctuate wildly.

What was the process?

I found an ideal solution by approaching a high street lender that would consider the net profits of my client’s business as well as his director’s salary. They would also use his projected income from his salary and business profits to secure an ideal loan amount. This would typically be difficult to encourage most lenders to do, but the lender in question took a very logical approach in this instance.

The solution:

I was able to secure a rate of 1.59% interest-only over a 2-year fixed term. This is a very attractive rate that we were able to achieve and hope to work with this client again on his future investments.