Lending Query
We were approached by a professional introducer based in Monaco who needed help finding a suitable private bank to refinance some existing debt secured on a large estate in the English countryside. There was some expensive short term debt secured on the property, which was vacant at the time of enquiry. The borrower used the short term debt to refurbish the property into a high spec and therefore required a refinance on a standard Buy to Let mortgage, on a full interest only basis. The loan requirement was at 65% Loan to Value based on a valuation of £7 million GBP
Client Circumstances
The client was a former architect with a long history of successful property development and did not have a straightforward income stream. Several different sources of income including capital disposals had to be evidenced via a detailed accountants letter. He was a UK national property developer in the UK and in Western Europe.
Problems to Solve
This was a typical asset-rich-cash-poor situation which seems to be a common problem amongst wealthy property professionals. The advisors at Silver Oak Capital are trained to handle situations like this so we always approach any lenders by ensuring that the loan can be fully serviced from existing income received from the security property. Several different sources of income including capital disposals had to be evidenced via a detailed accountants letter to support the application.
Solution Provided
We found an excellent loan option for this client with no wealth management requirements. The ‘dry lending’ solution offered the following terms:
£4.55 million GBP Loan
65% Loan to Value
2.89% Variable
5 year term
Full Interest Only
0.50% Bank Fee
No AUM