BVI Trust Refinance

Lending Query

A UK landlord, had purchased a plot of land on an up market enclosed estate in Richmond,South West London. The client approached us to following the completion of a large 5bedroom house which he himself had built on the site. He has used an expensivedevelopment loan from his own bank – which now needed to be refinanced on a like for likebasis via a cheap residential mortgage.The client required a loan of £5 million GBP and the property was valued at £12 million GBP.

Client Circumstances

The borrower was a UK national, with a very successful agricultural/farming business in theMidlands. He was also a serial landlord with a portfolio of rental properties located in the UK,France and Switzerland. Many of the clients’ rental properties were self-builds and he had agood track record of developing high quality luxury residential properties. Main sources ofincome were derived from his farming business and his property portfolio.

Problems To Solve

One of the key challenges was finding a lender who was willing to accept a complex incomestream to support a residential mortgage. As the property was held in an offshore Truststructure (British Virgin Islands) the lender we approached also needed to have a goodworking relationship with the trustees (based in Guernsey) – as they were in charge ofmanaging all aspects of the property transaction. We were instructed to find an interest onlyfacility over a 10 year term.

Solution Provided

We were able to connect this client with a Private bank which had a large presence in theUK, The Channel Islands and had an office in the BVI (where the Trust was administered).

Residential Mortgage Loan £5 million GBP
Rate 2.75% Fixed for 5 years (SVR thereafter)
Term 10 Years
Interest Only
Personal Guarantee from our client was required.
No AUM Requirement