One of our final deals of 2013 reinforced our reputation for high net worth expertise as we successfully completed a record breaking £25 million loan. For five months we worked alongside our client and a leading private bank and, just before Christmas, we finalised the deal.
The multi million pound loan, secured on two prestigious properties in Belgravia, is the largest loan that Enness Private Clients have ever arranged. Despite a number of hurdles along the way and the complexities involved in broking a deal of this size, we were able to secure our client the funds he required on an interest rate that would be the envy of many homeowners.
The broker who arranged the £25 million loan said: “My client, a UK-domicile, non-resident British national, approached me in the summer of 2013 as he wanted to speak to a broker who had wide experience in the large mortgage market. Having spoken to several brokers, the experienced landlord and property developer engaged me as he was impressed by my knowledge and professionalism. He was looking for a facility of around £25-30 million secured on an existing rental property and a property in the midst of a major refurbishment, worth a combined £50 million.”
“There were many issues to overcome, not least the client’s age and the fact that much of his income was derived from the rental income generated by the properties, which had been sold to complete the major refurbishment. However, using my contacts at a range of global banks I was able to put together a solution which satisfied the client’s capital requirements as well as giving him the flexibility to draw additional funds in the future.”
While many lenders were reluctant to commit to such a large loan with the larger London property yet to be rented, the broker was able to negotiate a deal with a leading private bank. The client’s initial £25 million loan – agreed on an interest only basis at a rate of just 2 per cent over LIBOR – allowed him to repay his existing lender and raise some capital for future projects. He also retained access to a further £5 million on a lombard loan facility, at a rate of just 1 per cent above LIBOR.
“It is certainly the most complex deal I have ever been involved with,” added the million pound mortgage specialist. “However, our expertise in the large mortgage market meant that I was able to negotiate exactly what the client wanted, not simply get him the best deal that a bank was prepared to offer.”
Islay Robinson, CEO of Enness Private Clients, said: “We have worked extremely hard for this client over several months and it is testament to both professional knowledge and persistence that the deal went through smoothly. It also underlines our reputation for being the first port of call for high net worth borrowers looking for a multi million pound mortgage.”
“I managed to find one private bank to do lending at very competitive pricing. We finalised a solution which enabled him to secure £1.8 million as a lombard lend against his cash bonus. This meant that my client was able to finance against his existing collateral – borrowing £2.7 million as a mortgage facility at a rate of 2% above libor. This meant that the funds were also used as assets under management which satisfied the Bank’s criteria for new clients. Effectively, this solution offered him a 100% loan to value loan.”