Successful Releasing Equity to Invest in a Commercial Property: A High Net Worth Case Study
Featured Snippet: This Releasing Equity to Invest in a Commercial Property case study demonstrates how Articus Finance helped a high net worth British national refinance their countryside home to fund a commercial property investment, using a bespoke remortgage solution.
Introduction
This Releasing Equity to Invest in a Commercial Property case study showcases Articus Finance’s ability to deliver tailored refinancing solutions for high net worth clients. Our client, a British national residing in the UK countryside, sought to unlock capital from their £1.7 million home to invest in undervalued commercial premises, supporting a new business venture.
Client Background
The client owned a countryside house valued at £1.7 million, which held significant sentimental value as a family retreat. Their existing mortgage was £300,000, a relatively small portion of the property’s value. The client’s goal was to refinance the property to release equity and raise capital to invest in a commercial property, specifically to establish a yoga studio.
Given the client’s high net worth status and investment objectives, a bespoke financial solution was required to balance the emotional attachment to the home with the need for capital growth and business expansion.
The Challenge
The primary challenge was structuring a remortgage that would release sufficient equity while maintaining manageable loan-to-value (LTV) ratios and favourable terms. The client required a loan amount of £1,020,000, representing a 60% LTV, to fund the commercial property purchase.
Additionally, the solution needed to align with the client’s long-term financial goals and provide flexibility to support the new venture without compromising the family home’s security.
Another consideration was the client’s desire for a smooth and timely process, as delays could impact the commercial property acquisition timeline. The complexity of balancing personal and investment property financing required a lender with experience in high net worth remortgages and commercial investment funding.
Our Solution
Articus Finance collaborated with a reputable private bank experienced in remortgages for investment purposes. We secured a 60% LTV mortgage of £1,020,000, enabling the client to refinance their existing mortgage and release £720,000 in capital.
This capital injection provided the necessary funds to support the purchase of the commercial property. Our holistic approach ensured the remortgage terms aligned with the client’s financial aspirations and investment timeline.
We also provided ongoing advisory support, guiding the client through the complexities of commercial property investment and ensuring a smooth transition from residential refinancing to business expansion.
Furthermore, we advised on potential tax implications and introduced the client to trusted professionals in tax planning and legal services, ensuring the investment was structured efficiently and compliantly.
Key Highlights
- Client: High net worth British national residing in the UK countryside.
- Property value: £1.7 million countryside house.
- Loan secured: £1,020,000 at 60% LTV.
- Equity released: £720,000 to fund commercial property investment.
- Investment goal: Establishing a yoga studio in undervalued commercial premises.
- Solution: Bespoke remortgage with a private bank tailored to client needs.
- Additional advisory on tax and legal structuring for investment.
Why Articus Finance Delivered
Articus Finance’s expertise in high net worth refinancing and investment finance enabled us to craft a solution that balanced the client’s emotional and financial objectives. Our strong lender relationships and deep understanding of bespoke remortgage products ensured competitive terms and a seamless process.
This case exemplifies our commitment to delivering personalised financial strategies that empower clients to realise their investment ambitions while protecting their core assets.
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Final Thoughts
This Releasing Equity to Invest in a Commercial Property case study highlights Articus Finance’s ability to deliver bespoke refinancing solutions that enable high net worth clients to unlock capital and pursue new investment opportunities with confidence and clarity.