Large capital raise on client’s country home to refurbish their London property

Key figures:

  • £10million property to be refinanced
  • £6.5million capital raise
  • £60million property being refurbished
  • 65% loan to value (LTV)
  • Rate of 2.89% for 18 months

 

The client:

As the owner of a multi-national corporation, the client in question had vast assets in London, Europe and Singapore. As well as this he owns a highly valued shipping business but, due to the economic climate, this asset that his business owned had been depreciating by around £6million a year for the last couple of years. This meant that his accounts had dipped into the red.

The client was referred to me by a private bank. They had found that they were unable to help him and his circumstances. Despite this, I referred him to Enness’ London office where I was confident he would receive a solution.

 

The property:

The client has a family home in Berkshire valued at £10million and an exceptional, high-value London Property.

 

What were they looking for?

The client wanted to refinance his country home in Berkshire to raise capital to finish the refurbishment of the family’s London home. He needed to raise around 65% LTV.

 

Why was it difficult?

When the numbers are this high, the complications of a case are multiplied. There were a number of factors against the client in this process. He was carrying a significant loss on his heavily leveraged company accounts and only had one year of accounts showing as in the black. He was looking to raise enough for the remaining refurbishment of the London property as it was unfinished.

Add this to his complicated income and asset structure in multiple currencies and Enness had numerous hurdles to overcome.

 

What was the process?

It was clear that Enness would need to find a lender who would take a pragmatic approach to this case. The lender selected allows for great flexibility when considering a client’s position on a case-by-case basis. Enness encouraged the lender to fully understand the significant loss of funds was on the large company asset rather than a personal asset. It was then possible for the client to be offered thoroughly bespoke terms.

 

The solution:

A smart negotiation resulted in the client being offered a 65% loan to value on the £10million property at a rate of 2.89% for 18 months with the client pre-funding the interest. This allowed for an ideal amount of capital to be released for the refurbishment of London property and a very healthy rate for repayment.

 

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