Project Background
Our client wanted to raise funds from two existing semi-detached properties to help fund the purchase of a new residential home.
The properties were held on separate titles, meaning the finance needed to be structured across both properties while also taking into account new leases that needed to be negotiated and put in place before completion.
The properties had a combined value of £290,000, with the client looking to raise £187,460 through the remortgage.
Challenge
On paper, this was a straightforward capital raise. In reality, remortgaging two properties on separate titles, alongside new lease requirements, added another layer of complexity.
The solution had to:
Raise £187,460 against the existing properties.
Work across two semi-detached properties held on separate titles.
Allow the client to release funds towards purchasing their new residential home.
Ensure new leases were negotiated and implemented before completion.
Provide a long-term funding solution with a manageable monthly repayment structure.
Solution
We secured a £187,460 remortgage facility against the two properties, with a five-year initial fixed rate of 7.79% and a 12-year overall term.
The facility allowed the client to release the capital they needed from their existing properties, providing funds towards their new residential purchase.
We also accounted for the lease requirements as part of the transaction, with the new leases needing to be negotiated and implemented prior to completion.
Outcome
The client was able to refinance their existing properties and release £187,460 in capital to put towards their new residential home.
The solution provided:
£187,460 of capital raised.
Finance secured against two properties on separate titles.
A five-year initial fixed rate at 7.79%.
A 12-year overall mortgage term.
Funds released to support the purchase of a new residential property.
A structure that accommodated the required new leases ahead of completion.
This case demonstrates how remortgaging can be used for more than simply securing a new rate. With the right structure, existing property can be used to unlock capital for the next purchase — even when multiple properties, separate titles and lease requirements are involved.
