Central London Property Refinance for HNW Business Owner

• Client: Successful business owner
• Property: Central London residential property
• Property value: £13M
• Loan amount: £9.1M
• LTV: 70%
• Mortgage type: Interest-only
• Rate: 1.24% above BoE base rate
• Purpose: Refinance residential property and reduce more expensive buy-to-let borrowing

Refinancing a high-value residential property can provide an opportunity to restructure existing borrowing and raise capital for other financial commitments. Enness was approached by a successful business owner who had accumulated their wealth in the entertainment industry and was looking to refinance a Central London property.

The client’s objective was to raise additional funds against their residential property and use the proceeds to reduce more expensive borrowing secured against their buy-to-let investments. The Central London property was valued at approximately £13M, with the required mortgage of £9.1M representing a 70% loan to value (LTV).

The size of the borrowing and the relatively high LTV meant that lender selection was particularly important. The client required an interest-only structure, while the overall objective was to achieve competitive terms that would make the refinancing worthwhile when considered against the more expensive buy-to-let debt.

Enness assessed the client’s circumstances and approached suitable lenders across the high-value mortgage market. With experience in larger and more complex transactions, the focus was on identifying lenders capable of considering the size of the facility and the proposed use of the released capital.

Following negotiations, Enness secured a £9.1M mortgage against the £13M Central London property at 70% LTV. The facility was arranged on an interest-only basis at a margin of 1.24% above the Bank of England base rate.

The refinancing allowed the client to raise capital against their residential property and reduce their more expensive buy-to-let borrowing. The structure therefore provided an opportunity to reorganise the client’s existing property debt while retaining an interest-only repayment profile.

The case demonstrates how refinancing can be used not simply to replace an existing mortgage, but as part of a wider strategy for managing property-related borrowing. For high-net-worth borrowers with multiple forms of property debt, the right lender may be able to consider the wider financial picture when structuring a bespoke facility.

Enness has extensive experience arranging high-value refinancing and works across traditional banks, private banks and specialist lenders. The appropriate solution will depend on the borrower’s circumstances, property value, existing liabilities, LTV, income and individual lender criteria.

Disclaimer:
This case study is for illustrative purposes only and does not constitute financial, legal, tax or investment advice. Finance is subject to status, underwriting, affordability, valuation, due diligence and lender criteria. Terms, rates, LTVs, fees and availability may vary depending on individual circumstances. The rate stated relates to the historical case and is not indicative of current or future pricing.

Risk Warning:
Property securing finance may be repossessed if repayments are not maintained. Interest-only borrowing requires the outstanding capital to be repaid at the end of the agreed term or when otherwise due. Using equity in one property to reduce borrowing elsewhere does not remove the underlying debt and may increase the financial exposure secured against the residential property. Property values can fall as well as rise, and borrowers should ensure that a suitable repayment strategy is in place.