Enabling a £3 Million Property Acquisition Through Innovative Lending Approaches
9th August 2023
Key Details:
- Client: UK National, UK Resident
- Property type: 5 bed detached Brighton Sea View
- Property value: £3,000,000
- Loan: £1,950,000
- LTV: 65%
- Interest rate: 5.76%, 2 year fixed
- Arrangement fee: 0.5%
In this case, we were approached by a distinguished UK business owner renowned for their exceptional success. Despite modest declared income, the client had no significant outgoings due to being debt free. This meant there was little need for a substantial salary for daily expenses. Our client was set on acquiring an exquisite 5-bedroom detached property offering sweeping views of the idyllic Brighton coastline. They also wanted to be a 'cash buyer'. The property's value stood at an impressive £3,000,000. With a Loan-to-Value (LTV) ratio of 65%, the client sought a loan of £1,950,000 to facilitate the acquisition. The client wisely opted for a 2-year fixed interest rate at 5.76%, a decision coupled with a 0.5% arrangement fee.
A unique financial manoeuvre was orchestrated, given the client's circumstances. Despite the client's declared income not aligning with traditional lender criteria for a substantial £4 million property investment, innovative strategies were employed to overcome this hurdle. Leveraging the accumulated profits within the client's business, a unique avenue was pursued to satisfy affordability requirements. The business's robust financial standing enabled us to present a compelling case for the loan request. Capitalising on the client's elevated net worth status, an exemption tailored for high-net-worth individuals further fortified the financial groundwork. This strategy facilitated a swift release of funds against the existing property. This manoeuvre transformed the client into a cash buyer, thereby enabling action in securing the residence.
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