Case Study –Musician | New Residential Purchase

Value	£5,850,000
Loan Amount	£4,095,000
Location	Surrey
LTV	70%
Achieved Rate	1.71%

The Client

Our client, a professional musician, had recently experienced a considerable reduction in his earnings, with an inability to tour in the planned year due to COVID restrictions – reducing his income from in excess of £3m, down to £1m. Additionally, he had a large commitment to provide child maintenance for his children, equating to approximately 50% of his income for the most recent years’ tax filings.

The Solution

We were able to find a lender willing to use an average of the last 3 years' income, despite the latest year being lower. This enabled us to bring the client's average income up to a level that would allow the borrowing amount required. The lender also took into consideration projected income, with a letter from the client’s accountant and a review of the demand for the client’s music, allowing them to feel comfortable that their income would increase once they were able to commence touring again. Using our knowledge of a musician's income cycle (album, tour and writing), we were able to outline projected income and explain why year-on-year this can differ. With our well-established relationships with underwriters, we were also able to provide an overview of the child maintenance commitments, that would cease in 3 years.

The Henry Dannell Difference

We were able to get the underwriter to review their standard policy rules to make an exception for our client based on the detailed overview we were able to present, explaining the nature of our client's income, projected income and commitments.