Securing a Mortgage for a Complex Grade II Listed Property

This recent IMC mortgage brokers case study outlines a complex property purchase managed by Calvin Liles, a CeMAP-qualified mortgage adviser who has been providing expert lending advice since 2019. The transaction involved a loan size of £52,000, representing a exceptionally low 24% loan-to-value (LTV) ratio. Despite the substantial equity injection, the property type presented significant underwriting hurdles, as it was a Grade II listed building featuring an integrated commercial and retail element.

The client was a UK national who had been residing in rented accommodation within the UK while maintaining ownership of a property in France. Upon successfully completing the sale of their French home, they intended to repatriate the capital proceeds to use as a deposit. Their ultimate goal was to purchase a specific UK property on which they had already had an offer accepted.

The challenge within the case presented a combination of intricate property and affordability obstacles that meant mainstream, high-street lenders would not consider the application. From a property perspective, the building was Grade II listed and contained a distinct commercial retail unit. High-street institutions typically reject properties with any commercial element out of hand. Furthermore, the property required an official change of use application to transition the commercial space into residential use before any lender would entertain advancing funds.

Financially, affordability was incredibly tight. Although the client had been successfully self-employed for fifteen years, their income structure was non-standard because they had been moving in and out of the UK over the previous few years. Their latest year’s income was significantly higher than the preceding years. To secure the necessary finance, it was absolutely crucial to find a specialist lender prepared to assess affordability solely on the most recent year’s figures, rather than taking a traditional multi-year average. Fortunately, timeline pressures were minimal, as the vendors were struggling to find any competing buyers capable of securing a mortgage on such a niche property.

The solution was recognising that standard criteria would not suffice, Calvin utilised his market expertise to place the case with a specialist, off-high-street lender known for taking a pragmatic, manual view of property types and uses. The adviser successfully negotiated with the lender’s underwriters to initiate and progress the formal mortgage application while the official change of use planning permission was still actively in motion. Furthermore, because the client was now establishing a permanent, long-term residency in the UK, Calvin presented a robust business case to justify using the latest year’s elevated income, which the lender ultimately accepted for the affordability assessment.

The outcome was to ensure the loan remained sustainable and to satisfy the lender’s strict debt-to-income ratios, Calvin provided strategic financial advice. He recommended that the client use a small portion of the capital proceeds from the French property sale to completely clear their remaining small, unsecured debts. Additionally, the client was advised to secure a fixed-rate mortgage for a minimum of five years. This structured approach provided the client with long-term budgetary certainty while offering the lender reassurance regarding medium-term affordability. Against the odds, the client successfully secured the mortgage and finalised the purchase of their chosen property. From the outset, this transaction had looked almost impossible to achieve unless the buyer could command a 100% cash deal.

Looking to purchase a new home and secure a mortgage, even if the case is complex? Contact IMC Mortgage Brokers today!!