UK mortgage for German national secured through SPV

I recently helped a client looking to sell his family residence in Germany, worth €1.2million. He was a German national who was looking to move to the UK full time so he could commit to expanding his UK based business. As a result, my client also needed to raise capital to free cashflow and facilitate the growth of his company.

In order to avoid compliance issues which arose between conflicting UK and German policy and cross border lending on family residences, I set up a Special Purpose Vehicle (SPV) in the form of a limited company. This gave my client the option to secure lending to the SPV, as opposed to finances in his own name, to complete the loan. He could then take a debenture on the company and a first charge on the property to free up cashflow.

I managed to secure a loan for the client with a public and private commercial lender who specialise in complex funding scenarios. They offered a loan amount of €550,000 and a security value of €1.2million.

A condition of the client was that he wanted time to sell, so the lender agreed for the loan to be taken over twelve months with rolled up interest, meaning that the client does not have to service the loan monthly. Instead, the interest adds to the total loan amount and is repaid at the end of term once the house has sold.

Although the loan was denominated in euros, Enness were able to help with the client’s needs of his euro and sterling exposure as a result of our new foreign exchange partnership with Argentex. Our international offering is growing significantly at Enness, and our exclusive partnership with Argentex has further enhanced our ability to offer our foreign national clients a completely bespoke and holistic service when buying or selling currency.

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