Refinancing and Capital Raising £1.7m For Extension Project
The situation?
At LDN Private Clients our client, a UK professional, approached us seeking to refinance their existing mortgage whilst borrowing an additional £300,000 for a substantial property extension. The total borrowing requirement was £1.7m on a capital repayment basis over an 18-year term.
Although the client had architectural plans prepared for the extension, planning permission hadn’t yet been approved and no builder had been appointed to carry out the work. The client was keen to secure the necessary funding before committing to the project, ensuring they had the financial certainty needed to proceed with confidence.
The client faced several significant challenges in securing their refinancing deal. Most lenders required detailed plans and approved contractors before releasing funds, but our client needed flexibility to access the borrowing before these elements were finalised. Additionally, the client’s income structure presented complexities that made standard lending assessments difficult. Their remuneration was heavily bonus-weighted, with a significant portion comprising vested options denominated in USD. This non-standard income profile created barriers for approval with many lenders, despite the client’s strong underlying financial position, as it didn’t fit their standard affordability criteria.
The solution?
LDN Private Clients approached this complex case by leveraging our extensive lender network and deep understanding of each institution’s appetite for non-standard scenarios. Recognising that the client’s income structure and pre-planning requirements would need specialist consideration, we identified lenders who had previously shown flexibility for similar cases. We knew that to get the application approved, we needed to prepare comprehensive documentation that clearly articulated the client’s financial strength, despite the bonus and foreign currency elements. Our team worked closely with underwriters, using our established relationships to ensure the application received proper consideration rather than being declined on initial automated assessments.
We successfully secured a market-leading 2-year fixed rate mortgage with a major high street lender’s high-net-worth arm at 65% LTV. This was achieved through direct engagement with our contacts in the lender’s specialist lending department, who understood the nuances of the case. The solution provided our client with the full £1.7m they required upfront, giving them complete financial certainty. This enabled them to move forward confidently with their extension project, negotiate contracts with builders, and proceed with the planning application knowing their funding was already secured. The client was delighted with both the competitive rate achieved and the flexibility we secured, allowing them to access all the funds they needed from day one.