Enabling a £3 Million Property Acquisition Through Innovative Lending Approaches

• Client: UK National and Resident
• Property: Five-bedroom detached property with Brighton sea views
• Property Value: £3 million
• Loan: £1.95 million
• LTV: 65%
• Product: Two-year fixed rate at 5.76%, 0.5% arrangement fee

Enness was approached by a successful UK business owner looking to acquire a five-bedroom detached property with extensive views across the Brighton coastline. The property was valued at £3 million, and the client wanted to move quickly and effectively approach the purchase as a cash buyer.

The client had a substantial net worth and a successful business but declared a relatively modest personal income. As the client was debt free and had limited personal outgoings, there had historically been little reason for them to draw a significant salary from their business. This created a challenge when assessing affordability for a high-value property purchase, as their declared income did not reflect the strength of their overall financial position.

The client wanted to borrow £1.95 million, representing 65% of the property value, while retaining a significant amount of their available capital. The key challenge was finding a lender that could look beyond the client’s declared personal income and consider the strength of their business and wider financial position.

Enness reviewed the client’s financial circumstances and identified that significant retained profits within the business could help demonstrate the client’s ability to support the proposed borrowing. Rather than relying solely on the client’s personal salary, we presented the strength of the underlying business and the client’s wider asset position to a lender capable of taking a more holistic approach to affordability.

The client’s high-net-worth position also provided an important part of the overall lending picture. By presenting the full financial background to the lender, Enness was able to demonstrate that the client’s modest declared income did not accurately reflect their overall financial strength or ability to support the proposed mortgage.

We successfully secured a £1.95 million mortgage at 65% LTV against the £3 million property. The mortgage was arranged on a two-year fixed rate of 5.76% with a 0.5% arrangement fee.

The structure allowed the client to access the property quickly while retaining a substantial proportion of their capital. By using the client’s wider financial position and the strength of their business to support the affordability assessment, Enness was able to create a financing solution that mainstream income-based assessments may not have accommodated.

This case demonstrates the importance of presenting a high-net-worth borrower’s complete financial position when their personal income does not necessarily reflect their underlying wealth. For business owners who retain profits within their companies rather than drawing significant personal income, a complex mortgage specialist can help identify lenders that take a broader view of affordability.

Enness works with business owners, entrepreneurs and high-net-worth individuals to structure bespoke property finance around their wider financial circumstances. To discuss your requirements, speak to a mortgage specialist.

Risk Warning:
Mortgages are secured against property and your property may be repossessed if you do not keep up repayments. Borrowers should ensure that mortgage payments remain affordable and that any proposed repayment strategy is realistic. Property values can fall, and changes in business performance may affect the borrower’s financial position.

Disclaimer:
This case study is for illustrative purposes only and does not constitute financial, legal or tax advice. Finance is subject to status, underwriting and lender criteria. Terms and availability will vary depending on individual circumstances and the proposed transaction.