I was approached by a client who was part way through a self-build project. Despite having funding in place for the build, my client had suddenly been given the option of increasing her stake in her global pharmaceutical business.
In order to purchase further shares she needed to increase the borrowing secured on her self-build property. The property had a ‘when finished’ value of £3 million. My client was looking to borrow a total of £1.5 million to repay the existing loan of around £1 million. She therefore needed to explore her remortgage options to release and raise capital to purchase the shares she wanted.
This transaction was complicated further by the fact that much of my client’s personal income was paid to her account in Dubai and relatively little income came through the UK.
My client had already been knocked back by a lender because of her income position and the fact that relatively little of her earnings came through this country. Many lenders I approached were also unable to help based on the fact that the property was not yet completed.
However, I managed to obtain agreement for the full £1.5 million loan. This was on a remortgage basis with a private bank on a three year fixed rate of 2.99 per cent. The lender was happy to accept my client’s income even though much of it was paid abroad as her company has several offices overseas.
The lender was prepared to release the full £1.5 million at the valuation stage (the property was almost complete) enabling the client to repay her current lender and use the additional capital to purchase the shares in her business.