When fund manager Simon Prentice* and his family moved to a new property outside London in 2022, they had a vision of creating a long-term home. Attracted by the green spaces and welcoming community feel of their Home Counties location, the Prentices wanted to maximise their enjoyment of both their house and the surrounding countryside, by adding light, space and luxury.

Their dreams were ambitious. The transformation would include a two-storey extension to increase the floorspace, as well as an orangery from which to enjoy views of the garden. Additional windows would be added to flood the property with light, and each room would be styled with neutral furnishings and hard wood flooring for a modern finish. In total, the work would cost £500,000.

Simon’s income was complex and irregular. He received a base salary alongside discretionary bonuses and dividends, which was reflected in his cash flow. Therefore, to fund the renovation swiftly, he turned to Investec Private Banker Carlos Mendes.

Carlos explains: “Our role as private bankers is to build long-term, supportive relationships and find solutions when needs change over time. In this case, we were able to explore the suitability of a development loan to help Simon’s family with their next chapter.”

 

Carlos Mendes
Carlos Mendes, Private Banker, Investec

Our role as private bankers is to build long-term, supportive relationships and find solutions when needs change over time. In this case, we were able to explore the suitability of a development loan to help Simon’s family with their next chapter.

 

Simon required a £1.8m facility to re-finance his existing £1.3 million mortgage and release an additional £500,000. Carlos looked at Simon’s earning and asset profile holistically to ensure the loan was affordable. “We work with a number of fund management and city professionals, and we recognise the contribution of discretionary and deferred pay to their total income, and the need for flexible repayment strategies,” he says.

In this case, Simon’s existing £1.3m mortgage was refinanced on a 25-year-term, while the £500,000 was offered on an interest-only basis for the same period. The total loan-to-gross-development-value (LTGDV) was 75%, with the funding released in six instalments.

The Prentices were able to complete their dream home within 12 months and remain delighted with the property and their new life in the countryside.

The desire to remodel or personalise a property is particularly strong at this time of year. “Many people are considering change or relocation and property development allows for the ultimate personalisation,” says Carlos. “While renovation projects can be stressful or time-consuming, obtaining the right mortgage for a purchase or development can be straightforward if you have the right support.”


* Names have been changed for confidentiality.

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Important information:

This case study is a representative example based on the services we provide.

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