I was recently approached by an internationally based client looking to purchase two properties in Knightsbridge for a total value of £6.8 million.
The 5 million pound mortgage requirement for this Geneva based client, where he is a resident, was going to be a challenge as he did not wish to bring any cash into the UK for tax purposes.
If you are not resident in the UK, or the majority of your income is generated internationally, we may be restricted by which lenders we use and generally you will need to be borrowing over £1 million.
The reason that there is increased mortgage availability for over £1 million is simply because many of our international lenders and private banks have a minimum loan amount of £1 million – more lenders means more options.
The properties themselves were also an added complexity as he also intended on creating one large residence by merging the separate two. Most lenders would see this kind of endeavour as development finance, territory where rates can be from at least 3% and upwards.
Enness Private Clients has an unparalleled contact book of lenders. Thanks to this and my own network, I was able to find a lender in Geneva who could facilitate the loan from there. Better still they were able to meet with the client the next day at his offices which was very convenient for all.
I was able to secure an interest only loan for £4.76 Million which works out as 70% loan to value and at a rate of Libor +1.5% for a 5 year term with no early repayment penalties.
The entire £4.76 Million Mortgage For Client Based In Geneva was secured in just over a week.