High Value Mortgage for a Complex Income Structure Client

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Key Facts:

• Client: Jersey Resident
• Property type: Unique Property at St Brelade’s Bay
• Property Value: £5,000,000
• Loan Amount: £3,570,000
• LTV: 75%
• Interest Rate: 1.94%
• Term: 5 Year Fixed

In this case, we were approached by an individual who was looking to leverage their principle residence in order to deploy the capital in their wider real estate business. The client had extensive real estate assets in the UK, however, given the sectors these assets operate in, and taking account of the various ownership structures, it was more cost effective to borrow against the stand alone residential asset in Jersey.

There was no shortage of options for this client, given the wider wealth story and background in business. However, the complex way in which the client’s affairs were structured and the relatively narrow, but high value, asset base meant that numerous lenders looked very conservatively at historic and forecast revenue.

The asset involved warranted retail bank pricing, however the circumstances attached required a private bank approach. Luckily, having operated in this sphere for numerous years, we knew just the bank, and more importantly the people within that bank, to get a deal over the line on the headline terms set out above.

Residential real estate in Jersey has boomed in recent times, and many property owners are now able to extract serious capital from their assets at modest rates of interest.