Case Study: Equity Partner Buys £1.5m Home With Complex Drawings
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Overview
A 37‑year‑old equity partner at a City law firm was buying a £1.5m family home in London. Their income had recently moved from salaried to irregular drawings plus profit share, alongside capital contribution funding and sizeable annual tax payments. With 25% deposit in place, the challenge was to present a clear, sustainable affordability picture to the right lender—without overselling variable income.
Client Snapshot
Profile: City law firm LLP equity partner, age 37
Objective: Purchase a £1.5m family home in London
Deposit: £375k (25%) from savings and previous sale
Income: Irregular drawings + profit share; recently promoted from salaried partner
Complexities: Capital contribution loan; variable quarterly distributions; significant annual tax payments
Key Challenges
Short Partner Track Record: Less than 12 months of equity partner drawings.
Uneven Receipts: Quarterly distributions and profit adjustments created lumpy personal bank statements.
Tax & Capital Commitments: Ongoing capital account funding and upcoming tax bill affected disposable income.
Affordability Methodology: Some lenders average multiple years or cap variable elements; others may consider the latest year or a bespoke projection depending on evidence.
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Our Solution
1) Mapped Income Properly
Collated SA302s & Tax Year Overviews (3 years) to show earnings trajectory.
Obtained an LLP finance letter confirming equity status, expected drawings/profit share, and capital contribution terms.
Included an accountant’s sustainability statement explaining variability and the expected range for the current year.
2) Presented The True Net Position
Broke out tax liabilities and capital account commitments so underwriters could model net disposable income prudently.
Highlighted cash reserves after completion to demonstrate resilience.
3) Shortlisted The Right Lenders
High‑street lenders with professional criteria that may consider partner income when evidence is comprehensive.
Private bank fallback for a holistic approach if mainstream policy proved too rigid.
4) Packaged For Speed And Clarity
Provided clean personal bank statements (6 months), LLP distribution schedules, proof of deposit, and source of funds.
Pre‑empted common queries (bonus/profit share consistency, upcoming capital calls) to minimise back‑and‑forth.
The Outcome
Loan: £1.125m (75% LTV) on capital repayment.
Structure: Standard repayment to de‑risk now, with a future option to review part‑and‑part once track record matures (subject to criteria at the time).
Offer Timing: Formal offer within three weeks of full packaging.
Why This Lender: Comfortable with professional clients and well‑evidenced partner income; accepted accountant’s confirmation and LLP letter alongside HMRC documents.
What Our Clients Say
Why It Worked
Story Over Snapshots: We told a coherent income story across salaried → fixed share → equity partner phases.
Evidence Beats Assumptions: Clear documents reduced uncertainty around variable drawings.
Prudent Affordability: We modelled after tax and capital contributions, avoiding reliance on peak quarters.
Documents We Provided
HMRC SA302s and Tax Year Overviews (3 years)
LLP letter confirming equity status, drawings/profit share basis, and capital account terms
Accountant’s reference with current‑year expectations and sustainability commentary
Personal bank statements (6 months) and LLP distribution statements
Proof of deposit and source of funds
ID & address verification
Alternatives We Explored
Private Bank: Would consider a bespoke approach using asset position and long‑term income trajectory; rates and fees weighed against flexibility.
Part‑And‑Part: Useful once partner track record lengthens; can balance cash flow with capital reduction.
Offset: To park tax reserves while reducing interest, keeping liquidity for payments and capital calls.
Tips For Equity Partners Considering A Mortgage
Start Early: Get documents in order before the property search.
Explain The Transition: If you’ve recently moved to equity status, provide context and projections from finance/accounting.
Budget For Tax & Capital: Lenders will; you should too. Build in buffers.
Consider Future Flexibility: Review options (offset, part‑and‑part, private bank) as your partner history builds.
Request your fee free mortgage consultation today. No obligation, just sound advice.
Quick FAQs
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Some lenders may consider LLP drawings and profit share for lawyers when supported by HMRC records, firm letters and accountant confirmation. Criteria vary; bespoke advice is essential.
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Not always. Some lenders may accept a shorter partner history if total track record (including salaried/associate years) and documentation support stability.
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Sometimes. Where credible, accountant‑backed projections may be considered—usually alongside historic evidence and conservative affordability.
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It depends. Private banks can be more flexible for complex income or larger loans. High‑street options may still work if the case is packaged well.
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APPROVED BY THE OPENWORK PARTNERSHIP ON 12/08/2025