Refinancing of a residential home to BTL, to buy stunning holiday home

Capital raise refinancing of a residential home to BTL, to buy stunning holiday home

Article by Drew Somerston Private Client Director

What was the situation?

My client, a fixed-term contractor, owned a £2,000,000 residential home in London.

They wanted to refinance their main residence to raise capital for the purchase of a £1,300,000 multi-unit holiday let property in the picturesque Scottish Highlands.


What was the issue?

With limited cash available and the client not wanting to liquidate other financial assets, we needed to raise enough capital to fund the mortgage, deposit and stamp duty on the purchase. Further to this, the client had also taken the decision to relocate his family and rent in another part of the capital, while renting out his existing home.

The complexity of the case was finding a lender comfortable with raising funds for the onward purchase of a unique investment opportunity, while also being comfortable with the intention to let out the client’s existing residential home as a buy to let, whilst renting a property themselves.

The case itself was further complicated by the client’s multifaceted self-employed income structure.


What was the process?

The first port of call was to raise the required deposit funds. We engaged with a market leading buy to let lender, explaining the reasons for the refinance and the clients intended future residential position. Based on the anticipated future rental income they allowed us to raise £1,000,000 including £500,000 to repay the existing residential mortgage and £500,000 for the deposit and stamp duty on the onward purchase, all on a fantastically competitive rate.


What was the solution?

With the property’s unique structure and location, raising the mortgage for the purchase initially proved tricky. Through negotiations with the final lender, we were able to agree a semi-commercial facility with a building society who were happy to offer the full borrowing. Further to this, they were happy for the clients to run the purchase through a limited company to enable tax efficiencies.


Lending solutions with LDN Finance

Are you looking to purchase a high value holiday home but have a complex income structure?

At LDN Finance, our specialist team has extensive experience in securing short-term finance solutions suited to your circumstances – no matter the complexity. Working closely with our trusted network of private banks and specialist lenders, we’re sure to secure a bespoke arrangement for your project at competitive, market-leading rates.

Get in touch with us to organise an initial consultation.

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Get your project over the line at market-leading rates with the unrivalled knowledge and network of our development, commercial and bridging finance specialists. Our expert advisers are on hand to find the ideal solution for your next or existing project, no matter the complexity.



Our happy clients

LDN Finance were on the ball, helpful, supportive and nice to deal with. They were brilliant at back channelling with both lender and lawyers. We had tricky development and bridging finance and a short time frame. I would recommend them.

Mr. H

April 2021

LDN Finance are a very professional and helpful company. We have done several deals though Chris and the Specialist team and I would thoroughly recommend them.

Mr. S

August 2021

An extremely professional service, explaining different stages of the bridging refinance process. I was kept informed with regular updates as to progress and requests for additional information. I would recommend with confidence.

Ms. M

August 2021

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