The Challenge
Our client identified an attractive mixed-use investment opportunity in South West London comprising:
A ground-floor retail unit
A one-bedroom flat
A large two-bedroom flat
The purchase price was £1,075,000.
Traditionally, funding a property of this type would require a substantial cash deposit, often tying up significant capital that could otherwise be used for future acquisitions. Many investors would also need to rely on expensive short-term finance before refinancing onto longer-term mortgages.
The client wanted to maximise leverage, minimise upfront capital investment, and keep finance costs as low as possible.
Our Strategy
Drawing on our specialist market knowledge and access to lenders not typically available through mainstream channels, we structured a funding solution using a title-splitting strategy.
Rather than assessing the property solely as a single mixed-use building, we identified an opportunity to secure lending based on the value of each individual component if sold separately.
Our assessment estimated the following values:
Unit | Estimated Value |
One-bedroom flat | £335,000 |
Large two-bedroom flat | £465,000 |
Retail unit | £475,000 |
This created a combined value significantly higher than the original purchase price and opened the door to a more efficient funding structure.
The Result
The lender valuations were returned in line with our expectations, allowing us to secure a total of £956,250 in mortgage funding.
This represented approximately 89% of the purchase price, meaning the client needed to contribute less than half of the deposit typically required on a conventional investment purchase.
To achieve the most cost-effective outcome, we utilised two specialist lenders, carefully selected from our network to provide the optimal combination of leverage and pricing.
Key Outcomes
£956,250 raised against a £1,075,000 purchase price
Approximately 89% loan-to-value against the acquisition cost
Significantly reduced cash contribution from the investor
No bridging finance required
No expensive refinance process later
Long-term mortgage funding from day one
Lower overall finance costs
Greater capital available for future acquisitions
Beyond the Finance
Our involvement extended beyond arranging the lending.
Working alongside the client's accountant, we advised on the most appropriate ownership structure for the acquisition. This ensured the structure was acceptable to lenders while also helping to optimise the client's longer-term tax position.
Why This Matters
For property investors, capital is often the biggest constraint on growth.
By using specialist funding strategies and leveraging relationships with lenders that understand more complex transactions, investors can often retain significantly more of their capital while still acquiring high-quality assets.
In this case, the client acquired a prime mixed-use investment using substantially less of their own cash, reduced their financing costs by avoiding bridging finance entirely, and preserved capital to accelerate future portfolio growth.
This is the type of strategic funding solution that becomes possible when finance is approached as part of a wider investment strategy rather than simply sourcing the cheapest mortgage.