The couple wanted to move to the countryside to a property with increased outdoor space and space to create home offices. Both individual’s employers had shifted to a home working model for the long-term since Coronavirus and they were no longer required to regularly commute into Central London. They found a property in rural Oxfordshire which fitted the bill, with outbuildings and a large garden costing £800k, but needed to finance the purchase and their savings were tied up in their London property. The complexities involved in the case were as follows:
- The couple required a deposit to purchase their dream rural home and had very little liquid funds.
- They needed a way increase the affordability of the two mortgage products, one for their existing home and one for their new home.
Solution & lending facility
With access to every lender on the market and vast experience negotiating property finance of every kind, Private Finance’s expert brokers are equipped to find solutions to mortgage-related problems and help borrowers use their mortgages as a key financial planning tool.
Our expert consultant suggested a let-to buy-mortgage, enabling the couple to remortgage and capital raise on their existing property to fund the deposit of the next, repaying their mortgage with the rental income. They took a further mortgage of 600k on the rural property, which they could afford using their income from employment and contributions from the rental income. This enabled a seamless transition for the couple and meant they could purchase their dream home, finance the debt, and retain their London property as a long-term investment.