What was the situation?
I was recently approached by a client looking to purchase a stunning Equestrian 8-bedroom farmhouse with two dwellings, near the picturesque countryside of the South Downs National Park. The property is set within 17 acres of gardens, woodland, stables and hill pasture. Following the purchase, the clients plan is to rent the property out on a holiday let basis.
The clients required a loan of £750k on a purchase price of circa £1 million, with the deposit coming from equity raised from their residential property.
What was the issue?
Although this stunning period property was extremely sought after, there were multiple complexities accessing the lending required. Firstly, lenders had issues with the total acreage of the property and the type of land that made up this acreage, which included gardens, woodlands, and hill pasture. Lenders also found issue with the number of bedrooms and the farmhouse having two dwellings on one title.
The final complexity was that the current homeowner had allowed a neighbour to use a small portion of their land for sheep grazing purposes. Although there wasn’t any business relationship in place or commercial intent, unfortunately this ‘gentleman’s agreement’ meant that several holiday let lenders were uncomfortable lending in this scenario.
My experience arranging finance on this type of property, coupled with my key partner relationships meant that I was able to identify early, which lender would consider lending on this country home. It was paramount that we worked with a lender and specialist surveyor who really understood the properties market value and potential profitability of this farmhouse on a holiday let basis.
What was the process?
With extensive knowledge and experience arranging lending on prime rural property and country estates, I was able to identify in a timely fashion the most suitable lender for this application.
I already had a strong relationship with this particular holiday let lender and have used them for similar applications on a number of occasions so was well educated on their mortgage application process.
I was therefore able to speak directly with the underwriter about the multiple intricacies of the case, which was invaluable in ensuring we progressed smoothly to getting the case approved.
What was the solution?
Despite the complexities faced, I was delighted to secure a market leading fixed rate holiday let product at a time when rates were volatile.
I was delighted to be able to find a solution for my clients on this complex scenario during an unpredictable market period.
The success of this deal means that my clients now own a beautiful equestrian farmhouse set near the stunning South Downs countryside, with fantastic anticipated holiday let potential.
Lending solutions with LDN Finance
Are you looking for a holiday let mortgage but would like some advice about the most suitable options available? We’re here to help you find a solution – no matter how complex your circumstances. At LDN Finance, our expert 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.