BVI Trust Refinance

BVI Trust Refinance – Lending Query

A UK landlord had purchased a plot of land on an upmarket enclosed estate in Richmond, South West London. The client approached us following the completion of a large 5 bedroom house which he himself had built on the site. He has used an expensive development loan from his own bank – which now needed to be refinanced on a like for like basis 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 the Midlands. 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 a good track record of developing high quality luxury residential properties. Main sources of income 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 income stream to support a residential mortgage. As the property was held in an offshore Trust structure (British Virgin Islands) the lender we approached also needed to have a good working relationship with the trustees (based in Guernsey) – as they were in charge of managing all aspects of the property transaction. We were instructed to find an interest only facility over a 10 year term.

Solution Provided

We were able to connect this client with a Private bank which had a large presence in the UK, 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