£1.7m Refinance and Capital Raise For Property Extension Project

What was the situation?

Our client, a UK professional, was looking to refinance their existing mortgage whilst borrowing an additional £300,000 for a substantial extension to their property. The total borrowing requirement was £1.7m on a capital repayment basis, over an 18-year term.

Whilst the client had architectural plans drawn up 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.

What was the issue?

The client faced several 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 – their remuneration was heavily bonus-weighted, with a significant portion comprising vested options denominated in USD.

This non-standard income profile made it difficult for many lenders to assess affordability using their standard criteria, creating barriers for approval despite the client’s strong financial position.

What was the process?

We 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 in order 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.

What was the solution?

We successfully secured a market-leading 2-year fixed rate mortgage with a major high street lender (with a 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.

High-value lending solutions with LDN Finance

Are you looking to purchase a new property but have a complex income structure? We’re here to help you find a solution – no matter how complex your circumstances. At LDN Finance, our specialist brokers have extensive experience in providing creative solutions to secure large loans for our clients.

We work closely with our trusted network of private banks and both high street and specialist lenders to arrange bespoke mortgage arrangements to suit your circumstances at competitive, market-leading rates. 

Get in touch with us to organise an initial consultation.