Lockdown and the Covid crisis have placed additional needs on the home for many high net worth individuals and families. It’s more important than ever that properties can provide dedicated space for work, family, gym and leisure all under one roof.
As a result, we are seeing many clients reassess their housing needs and taking advantage of low borrowing costs to make the move to a more suitable home.
In this case, a client of ours wanted to upgrade to a new property valued at around £7m in central London. Our exceptional service means we have long-standing relationships with many of our clients who return to use Enness for their property financing needs time and time again. This time, the client needed a loan to value (LTV) of 75% and wanted an interest-only mortgage.
High net worth borrowers are usually able to freely choose between a capital-repayment or interest-only mortgage, often opting for the latter to reduce monthly repayments and free up cash flow. However, lenders tend to require equity of around 40% from borrowers looking to buy high-value properties. Therefore, an LTV of 75% was a tough ask, especially on an interest-only mortgage.
In many cases, private banks would require a set amount of assets under management (AUM) to secure the best deals or high LTVs. However, we have built quality relationships with lenders who value our approach and professionalism in the field. Through our connections, we were able to secure a 75% LTV on an interest-only deal through a private lender, and without the client having to place additional AUMs.
The rate we sourced was a competitive five-year deal and the client was very happy with the outcome.
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.