We were approached by a client, a fixed-term contractor, who owned a multi-million-pound primary residence in London. They wanted to refinance this property to raise capital for the purchase of a £1,500,000 multi-unit holiday let property in the picturesque Scottish Highlands.
With limited cash accessible at the time, and the client not wanting to liquidate other financial assets, we needed to raise enough capital to fund the mortgage, deposit and stamp duty on the purchase. In addition to this, the client had also taken the decision to relocate their family and rent in another part of the capital, whilst renting out their existing home.
The complexity of the case came with finding a lender who was comfortable with raising funds for the onward purchase of a unique investment opportunity, whilst also being comfortable with the intention to let out the client’s existing residential home as a buy-to-let.
The case itself was further complicated by the client’s choice to rent a new family home and their multifaceted self-employed income structure.
The first port of call was to raise the required deposit funds. We engaged with an outstanding buy-to-let lender, explaining the reasons for the refinance and the client’s intended future residential position. Based on the anticipated future rental income, a facility was arranged to allow us to raise over £1,000,000 which would be divided to repay the existing residential mortgage, and pay for the deposit and stamp duty on the onward purchase, all at a fantastically competitive rate.
With the property’s unique structure and location, raising the mortgage for the purchase initially proved tricky. Through negotiations with the final lender, we negotiated a semi-commercial facility with a lender who was happy to offer the full borrowing.
Asset Based Lending