Property | 20 June 2024

Case Study: How a timely landed estate loan grew a family’s property portfolio

A client family wanted to diversify their income and assets with a London property, however they didn’t fit the normal criteria many lenders require – here’s how we were able to help them.

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The situation

A family that owned a significant amount of land via a landed estate wanted to purchase a property in London to help diversify their assets and generate new income. To do this they wanted to release some of the equity in their landed estate, they hoped this would raise just over £4 million which would go towards the London property purchase.

 

THE ISSUE

Unfortunately, the income generated by their estate was not sufficient to evidence serviceability as a commercial landed estate. This meant the family did not fall within the criteria to obtain finance required by a number of lenders.

They were in a very difficult position as they had already committed to purchasing the London property and had paid a non-refundable deposit.

Our solution

We were able to help thanks to our new Hobby Estate Proposition which allows us to loan against a landed estate by showing the loan is serviceable from income or assets that are personally owned by our clients. The proposition means we are able to lend to a farming partnership which owns a landed estate that might include both residential and commercial property.

For this client family this was an elegant solution to a complex issue – the loan for £4m+ was with them just seven weeks after they first called us. They were then able to move ahead with their London property purchase, appropriately leveraging their landed assets in order to grow their portfolio and diversify their income streams.

LEARN HOW A TAILORED LOAN COULD HELP YOU AND YOUR FAMILY

Your home or property may be repossessed if you do not keep up repayments.

Over 18s only. Credit is subject to status and approval. Terms and conditions apply. You may not be eligible for all Coutts mortgage solutions. Security may be required. Product fees may apply.

Think carefully before securing other debts against your home.

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