Securing a mortgage for a £4million development property in Surrey


Developing in one of the most exclusive postcodes in the UK is always going to come with a wealth of complexities. Add to this a client that has, on paper, a low income in comparison to the development costs, and the difficulties double. Enness, however, has the capability to find the ideal solution for this type of client.

In a risky market, the income of development companies will fluctuate wildly, meaning that lenders can be reluctant to help. This particular client was looking to repay £1.9million in development costs on a £4million property – a large single unit in Surrey – and at the same time raise £500,000 to fund future projects.

Furthermore, while advertising for both sales and lettings, the developer did not manage to achieve their sales goals, so they decided to let instead. However, the developer did not have a tenant lined up for the property at the point of application for a mortgage. The majority of lenders require that a client has both a high income and confirmation of a buyer or tenant for the property in question, but not Enness.


Development finance is typically expensive, with rates reaching upwards of 6%. At Enness however, we have a formidable network of connections with lenders and I was able to offer the client an ideal solution. After a conversation with a lender that we have a strong relationship with, I secured a rate of 3.19% over a 2-year fixed term with a 1% lender arrangement fee (interest only). My client was very pleased with this result, as it made sure that not only was he able to maintain the development of the property at a good price, but also yield profit from the rental and keep the property in his portfolio until there is a better time in the market to sell.


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