- Client: UK national and resident
- Loan Amount: Circa £1.5 million
- Property: Refurbished residential investment property
- Purpose: Refinance and release capital for further investment
Enness was approached by a UK-based portfolio landlord who had recently completed a significant refurbishment of a residential investment property. The works had increased the property's value, and the client wanted to refinance the asset to recover the capital they had invested while also raising additional funds for future opportunities.
Timing was important. The client was already considering further investments and wanted to have the additional capital available without having to wait for another opportunity to arise. The challenge was therefore not simply finding a lender willing to refinance the property, but finding one that could recognise the value created through the refurbishment and maximise the amount that could be released.
The property's rental performance was also an important part of the application. Enness looked for a lender that could take both the property's increased value and its rental income into account when assessing the borrowing.
Enness identified a specialist lender that was comfortable with the client's circumstances and the nature of the property. We negotiated a mortgage incorporating an investment valuation, allowing the lender to consider the property's rental yield alongside its underlying value.
This approach enabled the client to refinance the property for approximately £1.5 million, recovering the capital invested in the refurbishment while also releasing additional funds for further property investments.
For portfolio landlords, refinancing can be about more than simply replacing an existing mortgage. Where a property has been refurbished or its rental performance has improved, the right lending structure can potentially allow an investor to recycle some of the capital tied up in the asset and put it to work elsewhere.
This case demonstrates the importance of selecting a lender that understands investment property valuations and the wider objectives of a portfolio landlord. Enness’ remortgage solutions can be structured around the client's wider investment strategy, rather than focusing solely on the existing mortgage.
For landlords looking to release capital from an investment property following refurbishment or an increase in value, buy-to-let mortgage solutions may provide an appropriate route. Speak to a mortgage specialist to discuss your requirements.
Disclaimer:
This case study is for illustrative purposes only and does not constitute financial, legal, tax or investment advice. Finance is subject to status, affordability, valuation, underwriting and lender criteria. Terms and availability will vary depending on individual circumstances and the property. Property values can fall as well as rise.
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.
