Case study
How we helped a first-time landlord with no background income seek £500,000 for a holiday-let portfolio.
Case summary:
Client type: First-time landlord
Investment plan: Four substantial properties for holiday letting
Current position: One refurbishment completed; three still underway
Background income: None; living from cash retained following a share sale
Property value: £750,000
Mortgage required: £500,000 at 67% LTV
Loan purpose: Refurbishment of the remaining three properties
Main challenges: Landlord experience, no background income and a property adjacent to the client’s home
The client
Our client had recently retired from a senior London position following a long and successful career in finance.
Having sold a significant shareholding, he reinvested part of the proceeds in four substantial properties. His plan was to refurbish them individually and establish a holiday-let portfolio that would provide his retirement income.
The situation
The first property had been fully refurbished and was ready to welcome holiday guests.
With a value of £750,000, the client wanted to raise £500,000 against it to complete the works across the other three properties.
During this transition, he was meeting his living costs from the remaining cash proceeds of his share sale. As each property became operational, he intended the growing rental income to support the portfolio and eventually replace those capital withdrawals.
The experience challenge
Despite his substantial investment, the client was a first-time landlord without an established letting track record.
A £500,000 loan represented a significant commitment, particularly where the wider plan involved bringing four holiday lets into operation.
The lender considered his longstanding and successful career in finance as part of its assessment. This provided valuable context about his financial understanding and ability to manage a substantial investment, alongside the practical experience he still needed to develop as a landlord.
The background income challenge
The client no longer received employment income, and the holiday-let portfolio had not yet begun generating the income on which he ultimately intended to live.
His withdrawals from the proceeds of the share sale were capital, rather than recurring earnings. The case therefore needed to explain how he could meet his personal expenditure and property commitments while the letting business became established.
His remaining liquid wealth was central to that assessment. It provided a reserve to cover living costs and rental voids during the phased introduction of the four properties, reducing his immediate dependence on bookings.
The property challenge
The completed holiday let was adjacent to the client’s own home, which introduced questions about the independence of the lender’s security.
When a borrower owns neighbouring properties, a lender may be concerned that they could later be combined or used as one home. Any physical connection or blurring of boundaries could complicate repossession and the ability to sell the mortgaged property separately.
The relationship between the properties therefore needed careful consideration, including their access arrangements, boundaries and any shared facilities. The lender also needed to understand the intended holiday-let use and be comfortable that the property would remain a separate commercial investment.
The issue extended beyond its position next door: the property needed to function independently and remain saleable without relying on the client’s continued ownership of his home.
Our solution
Our approach centred on explaining the client’s transition from employment income to property income, supported by the wealth he had already accumulated.
We brought together his professional background, remaining cash reserves and phased refurbishment plans. The lender considered his successful finance career alongside his lack of landlord experience, while his liquid reserves demonstrated how he could support himself and the properties until rental income became established.
The first property’s completed refurbishment was also important: the proposed security was ready to let, while the borrowing would fund works elsewhere in the portfolio.
We also explained why he had acquired a property adjacent to his own home. The attraction was the convenience of managing a holiday let nearby and retaining control over the neighbouring property. He had no intention of combining the properties or altering the physical or legal boundaries between them.
Presenting that rationale clearly helped address the lender’s concerns, alongside consideration of the holiday let’s independent use and saleability.
Our client’s outcome
The lender assessed the client’s wider circumstances, including his professional history and available wealth, rather than considering his lack of background income and landlord experience in isolation.
The proposed £500,000 borrowing was designed to fund the remaining refurbishment works and support the gradual establishment of all four holiday lets as an income-producing portfolio.
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