Our clients’ situation
Our client was acting as the main trustee of a property held within an estate, alongside another trustee. The property had originally belonged to a family member who had since passed away and was now held in trust.
The beneficiaries were the trustee’s two children, who were not yet entitled to benefit from the trust assets. The trustee wanted to raise funds against the property in order to purchase a new home outright. The borrowing required was relatively modest at just over 30% loan-to-value, but the case itself was far from straightforward.
Key challenges included:
• The property being held in trust, requiring any borrowing to clearly demonstrate it was in the beneficiaries’ best interests
• No traditional earned income for either the trustees or beneficiaries
• Rental income only recently established, with accounting documents showing little to no net profit due to costs offsetting income in the first year
• An initial attempt through a specialist route being declined after several weeks, due to lender restrictions around inherited and consumer buy-to-let properties
With limited income evidence and a complex ownership structure, options were very restricted.
The solution
After reviewing the case in detail, our adviser identified a solution through a specialist pilot scheme not widely available across the market.
To support the application, we:
• Provided a copy of the will to confirm the trustees had authority to raise funds, provided this was in the beneficiaries’ best interests
• Used declared rental income alongside the current tenancy agreement to evidence affordability
• Structured the application on a Joint Borrower Sole Proprietor basis, an approach not typically offered for buy-to-let lending but accommodated under this scheme
To further safeguard the beneficiaries, the lender:
• Applied additional security against the trustee’s onward residential purchase
• Ensured the interests of the beneficiaries were protected in the event of repossession
Despite the complexity — including trust arrangements, limited income, and previous declines — a formal mortgage offer was issued within just 10 days.
This case highlights how specialist knowledge, persistence and access to exclusive lending solutions can unlock opportunities that may not be available elsewhere.
Speak to an adviser
To talk to one of our advisers about your mortgage needs, call us on 08000 38 37 36 or book an appointment today.
This is for information only. Products and rates vary depending on your circumstances, lender criteria and products available at the time.
There may be tax implications when arranging this type of transaction, this depends on your personal circumstances and may change. We recommend that you take independent tax advice before making these decisions.
