It’s not often that you come across the ideal plot of land on which to build your forever home. With stiff competition for the most sought-after locations, many sales are made under the radar – and at speed.

After forging a successful career in the City, Russell Jones* wanted to create a countryside home for his family, while remaining a commutable distance from London for his work in finance.

It had been a pipe dream for a long time, until in early 2023, he was offered the opportunity to purchase four acres moments from a thriving village community in the Home Counties. The setting was picturesque and private, with sweeping woodland beyond the perimeter fence, and beautiful views.

The local area was well-connected and with its independent boutiques and restaurants, Russell’s family began to imagine the lifestyle – and space – they could experience, by moving out of London.

In addition, planning permission had already been granted for development on the plot – and Russell was confident the approval for a five-bedroom home would give him the licence to build the high-end, open plan property he had in mind, complete with spacious kitchen, games room and snug. But he needed a lender who could understand his vision and complex financial needs.

The challenge

Development loans can be complicated, with funding released in conjunction with ongoing evaluation of the scheme.

In this case, Russell also needed a lender that could understand how his multi-faceted income could service mortgage repayments through foreign currency bonuses, stock awards and investment returns.

He turned to the private banking team at Investec, which specialises in supporting professionals and entrepreneurs who have complex wealth profiles.

“Our clients are ambitious and it’s not unusual for us to work on mortgage cases requiring upsizing, relocation or renovation and development of property,” says Investec Private Banker David Knott. “We approach each situation on a case-by-case basis and have the flexibility to tailor solutions that suit unique needs.”

The solution

David looked at Russell’s income streams holistically both to determine interest serviceability and an appropriate repayment strategy. He then sought to design a loan that would be split into two parts. The first would be put towards the purchase of the land (£750k) and the second would fund the development of the property (£2.5m).

Investec would provide the client with 100% of the development costs, based on a loan-to-gross-development (LGDV) value of 67%. When the works were completed, the loan would revert to a normal mortgage, leaving Russell with peace of mind and more predictability over his future repayments.

Russell and his family were able to look forward to their next chapter and to creating the retreat they truly wanted, in an attractive rural setting.

“The ability to solve challenges and build relationships is at the heart of private banking,” says David. “It’s always rewarding to be able to help seize opportunities and help people realise their goals.”

* Names and locations have been amended for confidentiality. This case study is a representative example based on the services we provide.

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Important information:

Your property may be repossessed if you do not keep up repayments on your mortgage. Investec development mortgages are only available for properties in England or Wales and are primarily available to UK residents and subject to eligibility.