Innovative Financing Solution for High-Value Property with Limited Income

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Key Facts:

• Borrower: High-net-worth individual
• Property: Unique property worth £4.25 million
• Finance Requirements: £2.5 million loan
• Terms: 5.44% interest rate for a 3-year period
• Unique Challenge: Limited income shown on their financial reports and difficulty in finding lenders to facilitate the loan due to the property’s nature

Our high-net-worth client sought financing for a unique property valued at £4.25 million. The client required a loan of £2.5 million for a specific project with an investment opportunity. However, traditional lenders were hesitant to facilitate the loan due to the grand nature of the property and the client’s limited income shown on their financial records.

To address these challenges and secure the necessary financing for our client, we developed an innovative approach:

We thoroughly analysed the client’s background assets, which included investments, other real estate holdings, and valuable possessions. By showcasing the full extent of the client’s asset portfolio, we could demonstrate their substantial net worth and financial stability beyond their income statement. Understanding the unique nature of the property and the client’s financial situation, we conducted extensive research to identify lenders who specialised in unconventional and high-value asset financing. We looked for lenders who were open to considering the property’s unique nature and the client’s asset base to mitigate risk.

Once we established a lender, we crafted a tailored financing proposal that showcased the client’s strong asset portfolio and explained the loan’s purpose and potential return on investment. This included providing detailed information about the project or investment opportunity the client intended to pursue.

As the case required a more personalised and individualised approach, we could action the already great relationship we had with the lender in order to work this case on the client’s behalf. This involved transparent communication and comprehensive documentation supporting the client’s financial position.

We successfully secured our client’s required £2.5 million loan through our diligent efforts. The financing solution came with a 3-year term at an interest rate of 5.44%, providing the client with the flexibility needed to execute their project or investment plan effectively. This case highlights the importance of innovative thinking and a personalised approach in complex financing scenarios. By carefully monetising the client’s background assets, showcasing the unique nature of the property, and identifying a lender willing to consider unconventional collateral, we secured the necessary financing and supported our client’s financial goals. Our ability to navigate the challenges of minimal income and unique property characteristics resulted in a successful financial outcome for our high-net-worth client.