| Loan amount | £2,400,000 |
| Purchase price | £3,200,000 |
| Loan-to-value | 75% |
| Property type | New build freehold block (8 units) |
| Location | Wood Green, London (N22) |
| Term | 25 years interest-only |
| Rate | 5-year fixed |
| Lender type | Specialist MUFB lender |
The Story
Fox Davidson works with property professionals including landlords and developers. We recently worked with a property developer who had built a block of flats in Wimbledon, London.
The Challenge
Due to the slowdown in the property market and as the property would achieve an impressive 7% yield our client wished to retain the freehold block of flats as an investment. Our client required funding for the development at 65% loan to value. The mortgage funds would allow them to repay the existing development finance on the property and raise some capital for their next development project.
The Solution
Success in New Build Financing:
Our efforts culminated in success as we secured a buy-to-let mortgage for our property developer client, enabling them to retain and rent out their newly constructed flats in Wimbledon. The selected lender was comfortable with large loans on multi-unit freehold blocks and offered very competitive terms on 5 years fixed rate.
Client Satisfaction and Future Collaborations:
Our property developer client expressed satisfaction not only with the successful outcome but also with the personalised and expert guidance provided by Fox Davidson throughout the financing process. The positive experience has laid the foundation for a lasting partnership, reaffirming Fox Davidson as a go-to funding partner for property developers and investors.
Conclusion:
Fox Davidson’s recent success in securing the funding for the development exemplifies our expertise in financing newly built freehold blocks of flats. Our ability to understand the developer’s funding needs, navigate lender criteria, and craft customised mortgage solutions sets us apart in the industry. As we continue to specialise in new-build financing, we look forward to supporting more property developers in bringing their visions to life, ensuring their success in the ever-evolving landscape of property development and investment.
For more information visit our dedicated page on mortgages for freehold blocks of flats or do get in touch with one of our brokers. We secure mortgages on freehold blocks of flats across the UK.
New build blocks carry a quirk worth knowing: some lenders apply a new build discount on top of the block discount, which can take 10% off the figure you were expecting before you have even started. We check the valuer’s basis before instruction on every one of these. It saves weeks.
Frequently asked questions
What is a high net worth mortgage?
A high net worth (HNW) mortgage is assessed under the FCA’s high net worth rules rather than the standard affordability test. It is available to borrowers with net assets over £3 million or annual net income over £300,000. Lenders read the net assets test literally and include the equity in your main home, and on a joint application only one of you needs to meet it.
How does HNW mortgage assessment differ from a standard mortgage?
HNW assessment is whole-of-wealth based rather than income-multiple based. Lenders consider total assets, liabilities, liquidity, income, and lifestyle costs, then negotiate loan size based on the overall financial picture.
What loan sizes are available with HNW mortgages?
HNW mortgages typically start at £1 million minimum and have no upper cap. Loans of £5 million to £20 million are routine for qualifying clients. Loans above £20 million typically involve syndicated lending or relationship-driven arrangements with private banks.
How long does an HNW mortgage take to complete?
HNW mortgages typically complete in four to ten weeks. Mainstream HNW lenders are at the faster end. Private bank cases involving committee approval, complex structuring, or offshore elements can take eight to twelve weeks.
All rates and terms are indicative and subject to individual assessment, lender criteria and property valuation. Your home may be repossessed if you do not keep up repayments on a mortgage.
Specialist mortgage advice for property professionals, high earners, and HNW clients across the UK.