Key Facts:
- Property: 2 x Buy-To-Let Apartments in London
- Property Value: £1,315,000
- Loan Amount: £657,500
- Product: 5 Years, Interest Only
- Margin: 4.50% per annum
In this case, we were approached by an Egyptian national who was looking to leverage two unencumbered investment properties in London. The properties were held in the client’s personal name, and there were a number of complications, as follows:
- The client was nearing retirement
- Other than ownership of the properties, the client had no UK footprint
- The client resides full time in Egypt
- The client’s wealth was generated in the hospitality sector which remains their sole source of income
These complications narrowed the field of potential lenders. Having explained the complexities to the client, it was accepted that no retail or private bank would support the transaction and alternative providers of finance would need to be approached. Following in-depth discussions and after gathering sufficient information to put a compelling case together, we approached the handful of lenders we knew would take interest in the deal.
Alternative finance is often expensive – regularly double digits. However, we were able to negotiate a margin of 4.50% from an offshore credit fund specialising in mortgages for foreign nationals.
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