£3 million property
Lombard loan of 80% against $5million vested stock
£1.2million to raise as deposit
Achieved rate of 1.1% plus Libor (0.53%)
60% loan to value (LTV)
My client was the CEO of a multi-national engineering company. He was Canadian, but his business was based in the USA. His income structure meant that he had accumulated $5 million of vested stock over 25 years of working at his previous company.
He had been offered a new job in Switzerland but wanted to buy a family property in London so that his family could reside in the UK and his son attend Public School here. He wanted to live and work in Switzerland, returning to the UK on weekends.
The property was located in the London borough of Islington and valued at £3 million. His initial intention was to sell assets to raise a deposit of £1.2 million.
He was an American Green Card holder which meant that not many international banks would offer him a loan. This was due to the complexities of American taxation laws, even though he was of Canadian origin.
To raise the deposit, I suggested that he maintain his vested stock. This would give him a return which could be used to offset against the overall mortgage. This method would also make sure to build a good relationship with the bank. I suggested a financial structure which consisted of moving my client’s vested stock offshore to Jersey where tax laws are very appealing.
I negotiated a Lombard loan against 80% of single stock he held offshore. This was with an international bank that could provide tax and wealth advice. We achieved a rate of 1.1% + Libor (0.53%) which raised my client his desired deposit of £1.2m.
We were then able to provide a regulated residential loan onshore and lend £1.8 million at a rate of 2% + LIBOR on a 5-year interest only term. This surpassed my client’s expectations as it secured him a very attractive 60% loan to value (LTV) on a residential UK mortgage.
France is one of the most popular property markets for foreign nationals: we are all aware of the chic appeal of Paris, the enduring allure of the Riviera in the summer or the freshness of the mountains in winter.
Covering everything from search and negotiation to making an offer and the legal processes, the guide will help you fulfil your dream of property ownership in France.