Mixed Residential and Commercial Remortgage with High Loan to Value
Featured Snippet: Articus Finance secured a mixed residential and commercial remortgage with high loan to value, arranging an 88% LTV solution for a client managing both residential living and a business operation in a manor house property. The refinance released £1 million of equity whilst also lowering monthly commitments.
Introduction
When structuring finance for complex property profiles, traditional lenders often hesitate, especially when clients require high leverage. This case illustrates how Articus Finance successfully delivered a mixed residential and commercial remortgage with high loan to value, combining asset refinancing with equity release and long-term cost reduction for a client in rural England.
Client Background
Our client, a British national and resident, owned a £3.4 million manor house located about one hour outside London. The property served as both her home and the operational base for a thriving nursery business. While the dual-use structure was financially efficient, it presented challenges in accessing mainstream lending.
She sought to release significant equity to fund residential improvements while also seeking to lower monthly repayments through a competitively priced facility. The requested loan structure involved an ambitious 88% loan-to-value ratio, a figure few lenders are willing to underwrite on mixed-use properties—particularly in a climate of rising interest rates.
The Challenge
The obstacles were clear and multifaceted:
- Mixed-use classification: The property combined residential and commercial elements, creating regulatory hurdles and narrowing lender choice.
- High leverage: Achieving 88% LTV on commercial refinancing is widely considered unachievable in standard markets.
- Client objectives: Equity release, reduced monthly obligations, and fixed-rate certainty were required simultaneously.
- Market conditions: The transaction occurred at a time of rising base rates, making competitive fixed rates increasingly scarce.
Conventional high street banks would not entertain such a request, requiring a bespoke broker-led strategy backed by strong private lender relationships.
Our Solution
Articus Finance identified and partnered with a lender prepared to consider the broader merits of the client’s position. By emphasising the value of the underlying property, the profitability of the nursery business, and the client’s asset base, we secured tailored terms that combined flexibility with security.
- Loan Secured: £2 million refinance against a property value of £3.4 million.
- Revised Facility: Increased mortgage by £1 million compared with the client’s prior borrowing.
- Structure: Fixed 5-year term offering long-term rate certainty in an unstable rate environment.
- LTV: 88% initial loan-to-value, set to amortise down to 75% over the fixed period.
The net result achieved all objectives: substantial equity released, monthly payments reduced, and long-term protection against further rate rises. The client gained the freedom to reinvest into her property and business without compromising affordability.
Key Highlights
- Client: British national, UK resident.
- Property: £3.4 million rural manor house (residential + nursery business).
- Loan Amount: £2 million remortgage facility.
- LTV: 88% with planned reduction to 75% over term.
- Outcome: Equity release of £1 million and reduced monthly outgoings.
- Interest Rate: Fixed rate secured for 5 years to provide stability.
Why Articus Finance Delivered
What set this case apart was the inaccessibility of conventional solutions. The property’s mixed-use classification and the requested leverage fell outside standard frameworks. Without an experienced intermediary, opportunities for release would have been lost.
Articus Finance succeeded by:
- Securing a high LTV refinance facility rarely available on mixed assets.
- Leveraging private lender relationships to negotiate beyond standard criteria.
- Balancing client goals of equity release and lower monthly costs with long-term sustainability.
- Protecting client interests by fixing debt costs amidst a volatile rate environment.
This case highlights why private clients rely on Articus Finance to broker outcomes unattainable on the high street. Our ability to redefine lender perspectives allows clients to unlock liquidity and optimise portfolio positioning even in heavily constrained scenarios.
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Final Thoughts
This mixed residential and commercial remortgage with high loan to value demonstrates the strength of bespoke solutions, strong lender networks, and adaptive structuring in the face of conventional barriers. For clients whose ambitions extend beyond rigid bank criteria, Articus Finance enables access to competitive facilities that preserve liquidity, protect wealth, and secure long-term financial control.
