£1.7m Interest-Only Private Bank Mortgage on a 50-Acre Country Estate with Outbuildings

Our client was looking to purchase a substantial country estate for £2.8m, comprising a principal residence set within 50 acres together with a number of outbuildings. To support the purchase, our client required a £1.7m mortgage on an interest-only basis, representing an LTV of 60%.

Alongside creating a long-term family home, our client planned to renovate the outbuildings and generate additional income through short-term lets.

The nature of the property placed the case outside the scope of many conventional lenders. The acreage alone significantly reduced the available lending options, while the number of outbuildings and our client’s future plans for the estate required a lender capable of taking a broader view of the property and its intended use.

Affordability also required close consideration. A significant proportion of our client’s remuneration was received through a deferred bonus structure, requiring thorough presentation to demonstrate both affordability and the availability of funds for the planned works.

George Smith, Mortgage Adviser, Private Clients, drew on his detailed knowledge of private bank lending criteria and his understanding of how lenders assess properties of this scale and character to identify the right lender for this transaction.

Detailed discussions were held with the lender to ensure they were comfortable not only with the property itself, but with our client’s longer-term plans for the estate and the intended income generation from the outbuildings. A clear picture of how the estate would be managed and developed following completion was central to the lender’s assessment.

Our client’s deferred bonus arrangements were presented in full, with the income evidence structured to demonstrate both affordability and that funding for the planned works was committed and in place.

When the valuation subsequently raised concerns regarding the condition of the main residence, a development that arose mid-process, George provided the lender with a clear programme of works and a committed timeframe for completion. He demonstrated that funding for those works was already accounted for within our client’s financial arrangements, giving the lender the confidence to continue progressing the case.

A mortgage offer was secured through a private bank, enabling our client to proceed with the purchase of the estate.

George’s management of lender positioning, income presentation and the valuation concerns ensured the case remained on track throughout underwriting.

The successful outcome enabled our client and their family to secure their new home while establishing an additional income stream from the estate, helping to support their plans for the property and future generations of the family.

LDN Private Clients advises high-net-worth individuals on large interest-only mortgages, private bank lending, and complex income structures. To discuss your requirements, contact our team at enquiries@ldnprivateclients.co.uk or call +44 20 3903 9875.