The husband and wife team jointly owned a limited company which would be the legal borrower and owner of the land being purchased.

However, the principal security for the loan was the couple’s own family home, a former public house with a substantial garden.

The borrowers had recently obtained planning permission for the redevelopment of this site to include the demolition of the house and the erection of five new detached homes.

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This more than doubled the value of the property with the couple releasing some of the increased equity in their home to purchase land with planning consent for two, four-bedroom homes.

The loan — which has an LTV of 48% — would repay the couple’s existing first charge mortgage and fund the site acquisition.

The security provided was a third-party first charge against their current residence, and a first charge over the development site being purchased.