The people, amounts, property and circumstances are invented to explain a borrowing brief. No lender, rate, approval, completion or client outcome is claimed.
- Loan requested
- £1,100,000
- Loan type
- Residential purchase
- Property type
- Flat
- Illustrative price
- £1,600,000
- Contribution to price
- £500,000
- Illustrative loan-to-value
- 68.8%
The price contribution excludes taxes, fees, interest, works and other transaction costs. Those need a separate budget. The ratio illustrates arithmetic, not lending criteria or eligibility.
The borrower’s brief
A couple are considering a Kensington flat at £1.6 million with a proposed £1.1 million mortgage and £500,000 towards the price. They want to preserve additional cash for furnishing and unexpected work rather than use every available pound as deposit.
The question behind the loan
The borrowing amount and headline purchase price do not describe the whole commitment. The lease, recurring building costs, planned works and any alterations already made to the flat need to be understood alongside income and other liabilities. A share of freehold, if offered, does not remove the need to examine the lease.
Information to bring together
- Lease documents and the actual remaining term, reviewed by the conveyancer.
- Current service charges, reserve funds and known major-work proposals.
- Income evidence and existing commitments supporting the proposed borrowing.
- The separate budget for taxes, legal work, moving and retained cash.
Where the assessment goes next
The next step is a joined-up review of the household and property evidence. If the building costs or required works are greater than expected, the cash contribution and borrowing plan may need revising. No loan offer, property value or lease acceptability is confirmed.
Discuss your own circumstances
A similar loan amount or property type does not mean the same finance is available. Income, commitments, credit history, the property and current terms need an individual assessment. Tell Jack what you want to achieve and any part of the plan that remains uncertain.
Prepared for Jack Cousins, Head of Mortgages at Lockhart Murphy. Updated 10 November 2026.
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