Case Study –Refinancing for Renovation Works

Value	£4,500,000
Loan Amount	£600,000
Location	Pimlico
LTV	13.33%
Achieved Rate	1.95% 10-year fixed
Completed	June 2022

The Client

Our clients, both working in various roles as non-executive directors were looking to refinance their unencumbered property to borrow funds in the sum of £600k, for planned renovation works. Having already spoken with a lender, and been declined due to the adviser not being comfortable with each of their multiple job roles, they urgently required support to confirm funds to book their contractors.

The Solution

We were able to source a lending solution that enabled our clients to leverage their current property to fund their planned renovation works. We were also able to obtain a 6-month offer, as their current property was debt-free, we could wait until the client needed to draw down the funds. This meant our client was not paying for funds he did not need to draw down yet, as the contractor he wanted was not available to start until 5 months after the application.

The Henry Dannell Difference

We were able to source a lender who was comfortable lending, based on the rationale we provided as to why the clients were able to run multiple jobs. We advised the lender that as our client's roles were advisory, therefore, it was easily justifiable for them to work all three jobs. On this basis, we were able to evidence sustainability to satisfy the underwriter’s affordability checks. We were also able to evidence that although the client was completing substantial works, the property would remain habitable throughout, meaning that the underwriters did not have concerns about habitability throughout the mortgage term.