Business-owner with substantial annual earnings owned a high value home in Mayfair, London and required a refinance of his existing mortgage plus an equity release in order to purchase a holiday home in Cannes, France. The borrower had a large salary as a major shareholder in his UK business and was looking for a high loan to value mortgage from a lender who was happy to lend against Prime Central London residential properties. The property value was £10 million and the client required a Loan to Value of 75%.
This client had a UK business and took most of his income via directors loans. The annual income of several million meant that the client could comfortably meet the affordability requirements most banks. One major complication about this deal was that the client was in the middle of a divorce – so any lender would need comfort surrounding the clients post-separation asset base and income.
Problems to Solve
Most lenders are quite conservative when it comes to lending on high value single-assets. The challenge here was introducing a lender who could take into account the clients high earnings to maximise the loan to value on the property.
Silver Oak Capital was able to place this deal with a London-based lender with a strong appetite for UK nationals and high value residential properties in Central London.
£7.5 million GBP mortgage
75% Loan to Value
Variable Rate 2.25% + 3m Libor
5 Year Term