Securing £2.75m for HNW property investor making their next purchase in prime central London

Article by Samuel Hesketh Associate Director

The situation?

I was approached by my HNW and experienced property investor client, who was looking to re-finance a multi-unit (2 units) freehold town house in Notting Hill, onto a holiday-let mortgage product whilst raising additional capital for an onward property investment purchase.

The client wanted 50% LTV at £2.75m to clear their loan and raise an additional £700,000 for their onward purchase.

The client lived in one of the units and was moving out on completion. Therefore, we needed a lender that would consider lending to a client with this set up.

In addition, another one of the units was currently let out on a holiday let basis anyway, however due to the client living in another one, I needed to find a lender who would lend against one year’s evidence of holiday let income for 50% of the property, and anticipated holiday let income for the other 50%.

Using my extensive knowledge of holiday let mortgages, this particular type of products requires a specialist bespoke lender that will take a view on the client’s overall financial profile to get comfortable lending.

By conversing directly with the lender’s credit committee, I was able to present my client’s case in its strongest light demonstrating my client’s financial profile to the underwriter in full.

The solution?

By leaning on my lender relationships, I was able to secure a competitive 5 year fixed, interest only facility at the clients desired 50% LTV.

By securing this loan, the client was able to continue growing their property portfolio, and already has their eye on the next purchase!

 

High Loan to Value Lending