- Client: British national and resident
- Property: Semi-commercial property in Guildford
- Property value: £3.36M
- Loan amount: £2.2512M
- LTV: 67%
- Rate: 3.5% above BoE base rate
Enness was approached by a client looking to purchase a £3.36M property in Guildford. The property presented an unusual lending structure, as it was divided across three separate titles and combined residential and commercial use.
The residential element comprised the main house and surrounding gardens, valued at approximately £1.55M, which the client intended to use as a family home. The remaining £1.81M comprised three warehouses and associated commercial land, let to a Christmas decorations business and held across two separate titles.
Although the client had a strong income, the combination of residential and commercial security made the transaction unsuitable for most conventional residential lenders. One option was to arrange separate residential and commercial facilities, but the higher interest rates and fees associated with the commercial borrowing made this unattractive.
Instead, Enness approached a private bank with experience in more complex property structures. The bank was able to consider all three titles together and provide a single blended facility covering both the residential and commercial elements.
We negotiated a £2.2512M mortgage at 67% LTV, with a rate of 3.5% above Bank of England base rate. The LTV was above the bank’s usual maximum, making the bespoke approach particularly important. The facility was also structured on a full interest-only basis.
The mortgage had no early repayment charges, which was an important consideration for the client. With significant bonuses expected in the future, the flexibility to make substantial repayments without an early repayment penalty suited the client’s plans.
The case demonstrates how a property with mixed-use elements and multiple titles does not necessarily have to be split into separate residential and commercial borrowing. With the right lender, it can be possible to structure a single facility around the overall property and the borrower’s circumstances.
Enness specialises in arranging bespoke finance for complex property structures. Our experience across commercial property finance and high-value residential lending allows us to explore solutions where standard lenders may be unable to accommodate the proposed security.
Read more about how complex income mortgages are assessed.
Read how Enness Global arranges million pound mortgages.
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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.
