👉 Knot your average case study from The Stafford 👈

Self-employed applications can often be difficult to navigate. In this case we help mum, dad and son remortgage the property that son lives in to capital raise some funds to extend their property portfolio:

• Property valued at £2,150,000
• Main house with 2 cottages let on a holiday let basis and 5 acres of land
• Need to consider directors’ loan alongside self-employed income for affordability
• Taking the earned income past the age of 75 for mum and dad

The mixed-use property isn’t a problem as we allow up to 40% of the title to be used for commercial purposes, which this property satisfied.

We needed to contact the accountant in this case to satisfy a few complexities with the income.

For the self-employed income we used the 2022 figures, the accountant confirmed the 2023 figures are considerably less than 2022 as the apps intend to draw on their directors’ loans.

The accountant confirmed the distributable reserves across the 4 companies which could provide the applicants with higher dividends than those actually taken. They also confirmed that the income could be drawn without the applicants taking an active role in the business so we could go beyond the 75th birthday.

We got the comfort we needed from the accountant to proceed with this case and get the applicants the amount they needed.

That’s another unusual case untangled by The Stafford for Intermediaries!