Case Study –Remortgage to Raise Capital for a Buy-to-Let

Clients Profession	CIO
Property Value	£1,000,000
Loan Amount	£540,000
Location	Bedfordshire
LTV	54%
Achieved Rate	3.79%
Completed	March 2023

The Client

Our clients were owners of an Airbnb property situated within the grounds of their estate. However, with significant school fee commitments and the desire to purchase a holiday let property, they were seeking to remortgage and raise capital. Despite their healthy incomes, the complexities of school fees, Airbnb income, and multiple buy-to-let properties posed challenges in terms of affordability and meeting mainstream lender criteria.

The Solution

This particular deal was handled by a forward-thinking regional building society that took a holistic approach to the case. They diligently considered the total outstanding school fee payments and offset them against the clients' savings. When it came to the capital raise for the holiday let property purchase, the clients faced a minor setback as they were outbid on one property. However, by showcasing to the underwriter the comparable properties they were considering, the building society was reassured and comfortable with the scenario. Moreover, the Airbnb aspect, which had raised some concerns, was effectively nullified through a comprehensive physical valuation.

The Henry Dannell Difference

Initially, the case was approved by a lender and declined at the eleventh hour due to a minor technicality. However, thanks to our exclusive access to a panel of lenders, which only a select few brokers, including Henry Dannell, have the privilege to work with, we were able to swiftly connect with the Head of Underwriting from day one. This proactive approach ensured that the case was smoothly approved with minimal delays, and all potential hurdles were effectively addressed well in advance. The result was a rate that surpassed any direct comparison on the high street, securing the best possible outcome for our clients.