Case Study: Equity Partner Buys £1.5m Home With Complex Drawings

David Walsh

DIRECTOR AND MORTGAGE ADVISER

Specialist broker for high-earning professionals and complex income cases.

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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

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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.

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Quick FAQs

• Which mortgage lenders consider lawyers’ partner income?

  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.

• Do I need three years as a partner?

  Not always. Some lenders may accept a shorter partner history if total track record (including salaried/associate years) and documentation support stability.

• Can projected drawings count?

  Sometimes. Where credible, accountant‑backed projections may be considered—usually alongside historic evidence and conservative affordability.

• Is a private bank better for partners?

  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