US Based UHNW Client Looking to Acquire UK Property

• Client: US resident and ultra-high-net-worth individual with significant business interests
• Property: London property valued at approximately £9.35 million
• Challenge: Required a high-value mortgage with a 60% LTV, no AUM arrangement and a swift completion
• Finance: More than £5 million dry loan at 2.19%, fixed for five years

International buyers looking to acquire high-value UK property can face additional considerations when their wealth and income are based overseas. This can become particularly relevant where a borrower requires a substantial mortgage, has no existing UK financial footprint and does not wish to place assets under management with the lending bank.

Enness was approached by a US resident and ultra-high-net-worth individual looking to acquire a London property valued at approximately £9.35 million. The client required mortgage funding of more than £5 million, representing an LTV of around 60%, and wanted to move quickly on the purchase.

The client was the founder of a highly successful business and had significant personal wealth, providing substantial asset backing for the proposed borrowing. However, as a US resident with no established UK financial footprint, the number of lenders likely to consider the application was more limited.

A further requirement was that the client wanted a “dry loan”. This meant that they did not wish to transfer assets to the lender as part of an assets under management (AUM) arrangement. While AUM arrangements can form part of some private banking relationships, the client wanted to secure the required mortgage without committing investments to the lending bank.

The proposed 60% LTV was not particularly challenging in isolation given the value of the property and the client’s wider financial position. However, combining the high-value mortgage with the client’s US residency, lack of an existing UK footprint, requirement for a dry loan and need for swift completion significantly narrowed the potential lender pool.

Enness therefore approached private banks and specialist lenders with experience of working with international high-net-worth borrowers. The application was presented around the client’s overall wealth, business background and the strength of the underlying property, while also making clear from the outset that an AUM arrangement was not required.

Following negotiations, Enness secured a dry loan of more than £5 million against the £9.35 million London property. The facility represented approximately 60% LTV and was arranged at a rate of 2.19%, fixed for five years.

Crucially, the structure did not require the client to transfer investments to an asset management division of the lending bank. The facility also accommodated the client’s requirement for a swift settlement, allowing the purchase to progress within the required timeframe.

The case demonstrates how private bank mortgage finance can provide flexibility for international high-net-worth borrowers purchasing UK property. Where a client has substantial wealth but does not have an established UK financial footprint or wish to enter into an AUM arrangement, specialist lenders may be able to consider the wider circumstances of the application, subject to lender criteria.

For international buyers looking to acquire high-value London property, bespoke large mortgage solutions can be structured around the borrower’s wider financial position, required LTV, preferred lending structure and completion timeframe.

Read the UK version of this case study.