Overview
Securing a high-value mortgage using complex income is rarely straightforward, especially for clients with complex and unconventional income streams. In this case, we successfully arranged a £4.9 million high-value mortgage for a UK-based surveyor purchasing a £9.1 million estate. The client’s income structure included proceeds from a recent business sale, commercial property rental income, agricultural subsidies, and other sources, requiring a highly tailored approach.
This case demonstrates the importance of specialist mortgage advice and lender relationships in securing high-value mortgage solutions for clients with intricate finances.
Client Profile
The client owned an extensive estate valued at £8.5 million, with an additional £600,000 property linked to future plans for downsizing and restructuring the estate to house their family members.
Their borrowing needs included refinancing an existing mortgage and purchasing a rare property that unexpectedly came to market in a location where opportunities like this are exceptionally scarce.
However, their financial profile presented several challenges:
- Proceeds from a recent business sale, with the client now acting as a contractor for the same business.
- Commercial rental income from a recent refinance we had arranged, not yet fully reflected in the latest accounts, but improving the client’s overall profitability.
- Director’s loans drawn from their business.
- Agricultural subsidies tied to acreage attached to the estate.
- Offset losses from a side business.
The Challenge
This case involved a highly unusual combination of income sources, with multiple revenue streams needing to be considered to meet affordability requirements.
Complicating matters further, the client’s borrowing needs shifted significantly during the transaction. Midway through the process, they opted to increase their loan amount to secure the rare property, requiring a complete restructuring of the application on what was already a tight affordability profile.
Our challenge was to:
- Accurately present the client’s mixed income streams to satisfy the lender’s affordability criteria.
- Refinance the existing estate loan with their previous lender, which had requested repayment.
- Secure funding for the new purchase with favourable terms under time-sensitive conditions.
Our Solution: High-Value Mortgage Using Complex Income
We designed a dual-strategy approach, allowing for flexibility and control throughout the process. Both refinancing and the new purchase were carefully structured to proceed concurrently, with clear backup plans in place.
Leveraging our strong relationships with boutique private banks, we secured a high-value mortgage using complex income and business proceeds with a lender known for its bespoke underwriting approach. We negotiated a preferential two-year fixed rate, beating their standard rate card.
Our deep understanding of the client’s complex income allowed us to present a compelling case, demonstrating how their business sale proceeds, agricultural subsidies, commercial rental income, and other sources collectively supported the borrowing requirements.
Thanks to our proactive approach and lender access, we were able to secure approval on the full £4.9 million loan despite the deal’s evolving complexity.
The Outcome
The client successfully secured the £4.9 million high-value mortgage at 53% loan-to-value, achieving their goals:
- They completed the purchase of the rare estate property.
- Their previous lender was fully repaid through refinancing.
- They maintained future flexibility to continue their estate restructuring and downsizing plans, which include housing family members on the estate.
At Henry Dannell, we specialise in securing bespoke mortgage solutions for clients seeking a high-value mortgage using complex income. Our ability to navigate intricate financial cases, negotiate effectively with lenders and deliver competitive terms ensures that our clients can achieve their property and financial goals with confidence.
This is a case study and not indicative of typical results. Past performance is not necessarily representative of future results. This information is for general purposes only and does not constitute financial advice. Please seek professional advice before making any financial decisions.
Please note: A mortgage is secured against your home. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it. Mortgage deals may not be available, and lending is subject to individual circumstances and status.
