The client – who had purchased the property to live in several years ago – has been granted full planning permission to demolish the existing property and build a 18,000 sq ft new main residence.
The incumbent mortgage lender had offered self-build terms that didn’t suit the client’s requirements.
As the client was an entrepreneur, it suited them to keep personal drawings from their company to a minimum and maximise the amount borrowed.
“In the current climate, lenders are exercising caution when considering lending on large, single assets,” said Jamie Rigby, financial consultant at Arc & Co (pictured above).
“I knew that this was going to be a pertinent factor when looking to fund a large, self-build project.
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“This was in conjunction with the requirement to leave the client’s liquidity in their business and maximise gearing.”
Arc & Co secured a remortgage of the existing facility, as well as a self-build mortgage of 100% of the build costs at 2.5% per annum on an interest-only basis during the period of the build.
The lender charged a 1% arrangement fee with no early redemption or exit fees.
“A key factor in this achievement was the extensive due diligence carried out by us at Arc, prior to speaking with the lender,” added Jamie.
"By the time that I met with the lender, I was able to present a full affordability assessment in the lenders own format, together with a full overview of the client’s financial background and the project.
“Knowing the lender’s requirements and their appetite meant that the lender’s initial due diligence was addressed almost immediately, allowing me to quash any concerns that the lender might've initially had.
“I was then able to negotiate the best terms on behalf of my client.”