£7.35 Million Equity Release For HNW Client

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Key Figures: 

• Client: UK corporate
• Property type: Single family residence outside London
• Property Value: £16,000,000
• Loan Amount: £7,350,000
• Interest rate: 0.68% pcm, 24 months term

In this case, a client approached us as they needed to access liquidity quickly to settle a substantial liability. The client – who had accumulated their wealth abroad in an emerging industry – was in the process of selling a property to raise the capital they needed. Although the client was seeing a good level of interest in the property and serious buyers, it became apparent that they wouldn’t be able to complete a sale quickly enough to be able to raise the capital they needed in time to settle their liability. They were therefore looking to release equity from the property, paying back the loan when the residence had sold. 

The client’s wealth was accumulated from business activities in what most lenders currently view as a high-risk sector. This meant they hadn’t been able to source a loan themselves. They also wanted to use their UK LLP as the borrowing entity rather than taking the loan out in their name, which added further complexity to the deal. With time running out, they turned to us for a solution. 

We knew exactly which lender could help and who could meet the client’s deadline. We started negotiations with the lender and got the valuation process underway, with a valuer attending the property just 24 hours later. We arranged for legal paperwork to be issued the same week.

We ultimately delivered a loan to the client, completing the transaction in four weeks – well within the client’s deadline to raise capital.