- Client: High-Net-Worth UK Nationals and Residents
- Property Value: Circa £4M
- Loan Amount: Circa £400K
- Loan-to-Value (LTV): 85%
Our clients, highly successful UK entrepreneurs, had recently purchased a circa £4M family home in Central London. With planning permission already secured, they intended to undertake a major renovation and substantial rear extension to create a bespoke residence tailored to their lifestyle and future needs. To progress the works, they required additional funding alongside their existing mortgage.
The main challenge arose once construction had commenced. Following the removal of a key part of the property, the house was temporarily classified as unmortgageable. This significantly restricted the clients' options, as most high-street lenders and traditional banks are unwilling to provide additional borrowing against a property that is not considered habitable.
This created a time-sensitive funding requirement. Despite the clients' strong financial position, successful businesses and significant income history, the condition of the property meant that a conventional approach was unlikely to work. A lender was required that could assess the wider circumstances of the clients and the project rather than relying solely on the property's temporary condition.
Enness leveraged its specialist lender network to identify a lender willing to take a more holistic approach. We arranged a circa £400K home equity loan at 85% LTV, structured over a 25-year capital and interest repayment term.
The lender considered a range of factors when assessing the application, including the clients' strong track record of entrepreneurial success, consistent income history, an anticipated equity event that would strengthen liquidity, and the involvement of an experienced professional construction team.
This approach provided the lender with sufficient comfort to proceed despite the property being temporarily unmortgageable. The additional funding allowed the clients to continue with the renovation and extension works without disrupting the wider project.
This case demonstrates how specialist property finance can provide a solution when conventional lenders are unable to lend due to the condition or status of a property. Enness's experience in complex property finance and access to a broad network of specialist lenders enables us to structure solutions around the wider circumstances of high-net-worth borrowers and their projects.
If you are undertaking a substantial renovation or extension and require finance against a property that may not meet standard lending criteria, speak to a mortgage specialist to explore your options.
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.
