Refinance of New York rental properties for UK resident

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THE SCENARIO

Property finance in New York is outside of our typical remit, but I was recently able to arrange this for a wealthy investor looking to refinance some New York rental property.

I had previously assisted this client with securing UK commercial property; he was delighted with the facility I was able to arrange for him and therefore approached me directly to discuss a requirement he had in regard to property finance in New York. He wanted to refinance his properties to release capital from them, and knowing that we had experience with international property finance, wondered if we could help.

He owned two buy-to-let properties in New York, which were owned through an offshore trust structure and an American Limited Liability Company (LLC). My client was a UK resident who was African domiciled, so I knew this would be a complex case to place successfully.

OUR SOLUTION

I therefore approached an American lender with a huge international presence, as I knew their global offices meant they would be able to deal with the complexities of this case. My contact at this bank was able to put me in contact with their London office; I was then able to begin a conversation with this bank’s ultra-high net worth (UHNW) private banking arm. This lender was happy to consider my client in light of his extensive background wealth and worldwide asset portfolio.

I was able to negotiate with this lender for a facility of $4million against the total value of $7million, at a rate of 3.75%. This would be on an interest-only basis, allowing my client to keep his liquidity high by minimising his monthly payments.

This facility would also allow my client to make overpayments without any early repayment charges (ERCs), which was a very appealing feature.

This case is an excellent example of the myriad finance options to UHNW individuals: I was able to source property finance in New York purely by using our extensive and valuable lender relationships. If you are an UHNW individual with challenging property finance requirements, don’t hesitate to get in touch for an overview of how we could assist.

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