Large self-build mortgage to rebuild Grand Designs family home

Area
Brighton / Hove
Capital Raised
£750K

The Scenario

Our clients are a high-earning young professional couple who bought not-quite-the-worst house in the best street: a corner plot on a leafy road overlooking Hove park, just seven minutes from the Brighton seafront.

Three years later they were planning to knock their home down and build their own Grand Design.

The current three-bed house, valued at £850K, was never going to win an architectural awards. But other properties in the street had been redeveloped with some design flair, so there was some leeway from the planning authority to be bold with a modern design and materials.

Our clients were planning to spend £750K to get the five-bedroom home they’d envisioned, which would eventually be valued at £2M.

The Solution

In the meantime they were looking at a build project of up to a year. During which time the value of their property would be slashed while the house was reduced to a hole in the ground.

They needed a lender comfortable with that level of risk, who’d offer affordable finance that would be available in staged tranches, so they wouldn’t be paying for money they weren’t using.

The couple were originally looking at development finance. But they had the capacity to pay off their mortgage, which opened up the field of possible lenders. And they had high-enough monthly income to pay the monthly costs of servicing a self-build mortgage, so that’s where we went looking.

We found them a two-year, interest-only self-build mortgage deal from a private bank. There are no early repayment charges, so as soon as the build is complete they can remortgage. 

The rate was a very manageable 3.25% over base rate (adding up to just on 4%pa at current rates), with a 2% lender’s arrangement fee.

The interest rate for conventional development finance, by contrast, would have been at least 2.5x higher, plus as a regulated loan on a personal home there would be no option to service the interest monthly, and it would be compounding over the loan term.

Our clients are now getting packed up to move out, and get the demolition works underway.

Mathew Phillips

Finance Broker

Bristol

0117 959 5094

Are you in a similar situation? I specialise in bridging finance at Clifton Private Finance - I will find you the best funding solution for your property transaction.

Alex Chambers

Senior Finance Broker

Bristol

0117 403 4324

Are you in a similar situation? I am a specialist in residential and investment property finance for UK and international clients at Clifton Private Finance. Please don't hesitate to get in touch for a no-cost discussion of the finance you need.

Luther Yeates

Senior Finance Broker

Bristol

0117 244 5561

Are you looking for a similar type of property finance? I have extensive experience finding residential and investment property finance for UK and international clients. Please get in touch and we can arrange a time that's convenient for you to discuss your situation.

Sam ONeill

Senior Finance Broker

Bristol

0117 959 5094

Is your situation similar? I am a bridging finance specialist at Clifton. I can find a quick, cost-effective solution for the funding you're looking for.

Robert Gibb

Senior Finance Broker

Bristol

0117 959 5094

Are you looking for mortgage or short-term finance for residential or buy-to-let property (including HMOs)? I have extensive experience in finding property finance solutions for UK and international clients, both as individuals and limited companies. Please give me a call and let me see what I can do for you.

Adam Arnott

Associate Director

Bristol

0117 205 0214

Is your situation similar to this? I have extensive experience of advising clients who need creative property finance solutions. Please get in touch and we can arrange a time that suits you for a detailed discussion of your requirements.

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