Entrepreneurial investment banker secures £1.9m self-build mortgage
The situation?
My long-standing client – an investment banker – approached me in need of my help. A few years ago I helped them acquire a plot of land with the intention to build a family home on it, using it as a main residence.
Since the acquisition, it had taken 3 years to amend planning to the client’s requirements and increase the square footage to their specification. The client was looking for a £1.9m mortgage, against £2.8m gross development value (the estimated value of the property once the works are all carried out).
The main difficulty we faced with the client’s application was that they wanted to set it up via a limited company to employ construction workers, enabling them to sub-contract all trades people required for the job. In doing so, the client could not only benefit from this being more tax-efficient based on advice they had received, but also have more control over the build, reducing costs where possible.
When exploring suitable facilities, it was important that I found a lender who was confident in the client having control over the builders and subcontractors. Following a number of conversations with various relationship managers, a specialist lender was confident in the complexities of this application and was able fulfill the requirements of the client.
The solution?
Once I knew that the lender would accept in principle, I compiled a detailed application that outlined current and future plans for the land and property. With this information, the lender was happy to accept and provided a variable interest only self-build mortgage with no early repayment charges, so the client could refinance when required.