The case in brief
- Client: UK National & Resident
- Property type: Portfolio refinance
- Property value: £ 30 million
- Loan Amount: £22.5million
- LTV: 77%
The demand for buy-to-let properties remains high for our HNW clients. The number one driver for this demand is the long-term security property gives. With rental income and capital growth, buy-to-let properties are an asset class in their own league.
In this case, Articus was approached by an HNW client with a large London portfolio compromised of 15+ properties, all owned in different structures – personal name, limited company and partnerships. He was looking to refinance on better terms, consolidate the debts with one lender and release equity to buy another high-valued property. Download our High Net Worth Guide for more details on how to navigate the complicated world of high-value debt.
Our client
The client was a successful British property investor with a high personal net worth. They were struggling to remortgage their portfolio of high-valued properties in London.
The first caveat was the ownership structures all varied, the second was that the client was looking for 75% loan to value (most lenders, at this value, will provide a maximum 65% LTV) and the final caveat was that the client’s only income was derived from the rental income – lenders prefer surplus income from another source.
The client was also insistent on only one lender providing the loan, which complicated matters further.
Our solution
Finding a lender that would offer more than 65% LTV proved a tough task. However, we approached a private bank with which we have a long-standing relationship. The lender in question usually has a maximum loan-to-value of 70%; however, we managed to negotiate this up to 75%.
The lender was happy with the various ownership structures and consolidated the debt all into one loan.
This was an excellent result for the client and a clear example of the benefit of working with a broker to navigate and negotiate the complicated world of private banks / high-value debt.
Get in touch with one of our team.