Case study 6
Key Facts:
Planning agreed for a knock-down rebuild of old 1960 bungalow for a new contemporary 5 bed home
Site value: £800,000
Loan required: £2,000,000
Gross development value: £2,950,000
Current mortgage £400,000
Limited company director with a small income showing on tax return
Finance was required to assess the feasibility of borrowing 100% of the build costs while repaying the existing mortgage secured on the bungalow.
The broker wanted to involve Mayflower as their client’s personal income was insufficient to support the required borrowing, despite the client being a part-owner of a large firm. The client accepted a modest salary, which would not have supported the project's required lending structure.
Through our strategic relationship with a specialist self-build lender, we supported the broker in securing finance to repay the existing mortgage and fund 100% of the build costs.
The case was presented to lenders using the client’s share of the limited company's net profit rather than personal income. A product was secured at an interest rate of 4.49%, with no exit fees payable to the lender upon completion of the build.
Why do brokers want to work with Mayflower?
Mayflower was founded after our directors, Mike and Lulu, completed their own construction project. They saw firsthand how complex and unclear specialist finance can be, even with their industry knowledge.
Today, we are a specialised team focused on finance for self-build projects, renovations, and conversions. Many of our team members are self-builders, so we understand the pressures involved in decision-making. We take the time to thoroughly understand each project, communicate clearly about what is achievable, and support brokers and their clients through a professional financing process.s involved. We take the time to understand each project thoroughly, communicate clearly about what’s achievable, and support brokers and their clients through a professional finance process.
