A family of four wanted to raise capital for property investment by upsizing their living arrangements. They aimed to do so by converting their current home into a Let-to-Buy (LTB) property and purchasing a new residence. We helped them secure a Joint Borrower Sole Proprietor (JBSP) mortgage, allowing them to use their child’s income for affordability despite a recent contract change.
The Challenge
The family faced several obstacles in securing the desired lending:
- Complex Income Mortgage: The adult child had just signed a new employment contract and could not provide standard payslips at the time of application.
- Remortgaging to Release Equity: The clients needed to remortgage to release equity in the UK from the existing £500,000 property to fund the deposit on their new home.
- JBSP Affordability Requirements: Finding a lender willing to offer a JBSP mortgage where both the parents and the child would reside in the property, while maximising affordability using the child’s higher income.
The Strategy
To structure a deal that met the family’s needs, we leveraged our network of specialist lenders:
- Tailored Let-to-Buy Deal: We sourced an LTB mortgage that kept monthly costs low, allowing the parents to rent out the property as a future investment/pension asset.
- Specialist JBSP Alignment: We presented the child’s new employment contract to specialist underwriters to bypass the standard payslip requirement.
- Extended Loan Term: We structured the new purchase on a repayment basis stretched up to the parent’s 80th birthday, maintaining affordable monthly payments.
The Results
- LTB Property Value: £500,000
- LTB Loan-to-Value (LTV): 75%
- New Purchase Price: Just over £600,000
- New Purchase LTV: Just over 50%
- Mortgage Structure: JBSP Repayment Mortgage
- Key Outcome: The family completed both transactions, allowing them to upsize while retaining their original property.
Why This Matters
Combining a Let-to-Buy arrangement with a JBSP mortgage allows families to upsize their living arrangements while preserving their original property as a long-term investment. By tailoring the application to accommodate newly contracted income, the family avoided potential delays in the transaction.
Speak to a Specialist
Ready to explore your options to raise capital for property investment or upsize your home? Book a consultation with our team today.