High Value Mortgage for a Non-British National

THE SCENARIO

Our client is a Middle East resident with no ties to the UK other than property ownership and regular family holidays and thus needed a high value mortgage for a non-British national.

He already owned one unencumbered high value property in London and, given the security and gains to be made on UK Property, he wanted to buy another to increase his portfolio.

The current property was valued at £3.5 million and the new one a shade under £5 million. Income and Non UK assets were plentiful but he did not want to move any funds into the UK which made the transaction slightly more problematic given most private bank lenders who are appropriate for these enquires require assets under management. Essentially we then needed a lender to grant a transaction only high value mortgage for a non-British national.

Furthermore, the ownership structure was a fairly standard BVI company with nominee shareholders and a deed of trust.

OUR SOLUTION

We raised a mortgage against both properties at 70% loan to value. This allowed for the full purchase price of the new property to be raised. The Bank held back the balance of the mortgage (about £1m after fees) to hold as security and to invest according to the clients wishes.

The lender was happy with this high loan and loan to value given the clients background, other assets and the security – this as a whole allowed us to drive the margin down to under 2.5% and with fees low (compared to the high street anyway!)

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