Unlocking £500,000 Liquidity for EU National's London Property Venture
15th November 2023
Client Detail: EU National and Resident
Property Value: Circa £3 million
Property Location: London
Bridging Loan: £500,000
Our client, an EU national and tax resident, inherited a substantial wealth portfolio, predominantly tied up in various assets. Among these assets was a prime property located in the heart of London.
The client faced a challenge because most of their wealth was locked in illiquid assets. With ambitious plans for a new project, immediate access to significant funds was crucial. The London property, valued at circa £3 million, emerged as a potential source of liquidity, with the client seeking to unlock £500,000 for their upcoming venture.
Recognising the unique cross-border nature of the situation, our financial experts devised a customised solution to meet the client's immediate liquidity needs while optimising tax implications.
We proposed a collateralised financing strategy, leveraging the high value of the London property. By offering the property as collateral, the client could secure a loan against its appraised value, accessing the needed funds without liquidating the property or other valuable assets.
To maximise the efficiency of the financing solution, our team collaborated with the client to determine the optimal borrowing amount. The agreed-upon £500,000 was carefully calculated to meet project financial requirements while minimising interest costs associated with the loan. Recognising the urgency of the client's needs, we implemented a process to expedite the financing arrangement. This process involved collaborating with legal and financial institutions across borders to ensure a swift and efficient approval process.
The tailored financial solution allowed the client to successfully raise £500,000 against the London property, enabling them to launch the new project without sacrificing the long-term value of their inherited assets.
This case highlights the significance of customised financial solutions that consider the intricate details of a client's situation, mainly when dealing with cross-border transactions and complex tax implications.
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