Unlocking Equity in Real Estate to Facilitate UK Property Acquisition
31st January 2024
A potential client recently contacted us during their property acquisition journey in the UK. Although their bank was willing to finance 70% of the asset's value, they needed an additional £500,000 to finalise the purchase. Interestingly, they could complete the acquisition in cash, making cost-effectiveness a top priority. This ruled out options like bridging finance or second charges, pushing them towards a more budget-friendly solution.
The client's diverse real estate portfolio also included a property in the Balearics valued at over €1 m. Recognising the potential in their other assets, we proposed a strategic move to release equity and facilitate the completion of their UK property acquisition.
Our solution included the following terms:
- Maximum Loan-to-Value (LTV) of 60%
- 25-year fully amortised loan
- Flexibility to choose between a fixed or variable interest rate
The client agreed to proceed with our proposal, expressing satisfaction in our ability to not only find a suitable solution for their situation but also unlock cash from a property they initially believed to be less accessible for such financial opportunities. This successful collaboration exemplifies our commitment to providing innovative and cost-effective financial solutions tailored to each client's specific needs.
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