Top 15 Finance Terms Offered - Feb 24 Edition

In a new focus for this newsletter - I’m going to share headline detail of some of the 15 most interesting terms we have issued to our clients in the last few weeks.

“Terms issued” are lending rates, offered to us by a lender which we have put to a client as a suitable or best solution to their circumstances. This covers UK and International mortgages, corporate finance and securities finance as well as commercial, bridging and development finance solutions.

I hope that this will give you a better understanding of at least three things:

1. What we actually do as a business, and the space we operate in.
2. How the lending market now functions in the top 1% of the market, including what lending options exist and where pricing is.
3. The huge range of tailored finance solutions which we can offer and how we can apply these to different client types.

We take the broadest possible viewpoint to find the correct terms for our high-net-worth and business clients, working with hundreds of sources of finance to solve the most intricate or time-sensitive problems.

I’ll do another one of these in the next few months.

?***********************************************************************************

UK Mortgages and Finance

￡7m mortgage on a ￡40m with of residential property – client has no income. Needs ￡5m to replace current lender - ￡2m for liquidity and to tidy up the property – interest rolled up to service payments until the owner decides to sell the property within 5 years. Rate of 1.75% plus base.

——————————————————————————————————————————

Refinance of 3 properties to stop possible legal action – due to delays in building works run over term on their existing development facility. Without the funds to repay it required a bridge refinance to A) Raise funds to finish the works and B) buy the time to complete the works before selling the development. Security offered was the main residence and two investment properties – we were able to secure terms at 65% LTV (11,900,000 GBP) for 1.1% PCM.

——————————————————————————————————————————

Purchase of a property in Central London for 8,000,000 GBP. Our client is looking to borrow at 85% LTV. The client formed a business only 18 months ago and is therefore not drawing any income. We found a lender willing to work from the client’s company cash position. They have offered terms at 85% LTV with 75% on Interest only. The interest rate is 1.19%+BBR.

——————————————————————————————————————————

UK entrepreneur buying a new residential property. ￡4m purchase price, 75% LTV, 6.75% offset facility which allows them to hold funds needed to refurbish the property in a non-interest-bearing way. Client’s current home retained until works on the new property sold, proceeds to pay down the mortgage, yet affordability only based on the new mortgage. Income calculated off company net profit figures not tax returns.

——————————————————————————————————————————

Client is looking to refinance an existing second charge which was past term, this charge would be secured against their main residence. We have organised terms for them at 75% LTV allowing them to repay an existing second charge and buy time to complete on a full refinance of their existing mortgages. The property is valued at 17,500,00 GBP and we have organised a second charge at 3,100,000 GBP.

——————————————————————————————————————————

18-month finish & exit loan of ￡16,500,000 for a high spec new development. 1% bank arrangement fee. 0.5% exit fee. 60% LTV. Interest at 3% over BOE base rate.?Single residential dwelling of 30,000 sqft in Southern England. UK Developer. ?

?

International Mortgages

International resident in Switzerland looking to purchase a villa in Emirates Hills, Dubai. Purchase price 80M AED. Terms available at 50% LTV at 4.5% 3 year-fixed for a non-resident.?

——————————————————————————————————————————

10,500,000 EUR loan, 7 y interest only @1.3% + EURIBOR. AUM 35%. Client was looking to buy an international property and was buying the shares of a company that owned the asset rather than the company directly. Great terms for a complex client.

——————————————————————————————————————————

Client looking to refinance an international property they owned– no liquid cash to bring to the bank, and income not big enough to sustain an 8 m+ EUR loan. Owner of many shares of publicly traded stock – we found a bank that accepted the single line as AUM,?and that considered the liquidation of the shares over time as a mean to pay for the interest. Custody fee 0.3% on the shares, rate 1.35%, interest only loan renewable every 5 years.

——————————————————————————————————————————

Middle East UHNW client buying a property in European capital city via a European corporate structure. UHNW buyer in a nonstandard industry which makes traditional finance hard. Euribor plus 10%. EUR12m at 50% LTV.

?

Corporate Finance

PLC Client. Globally trading in high-risk jurisdictions. Bespoke Trade Finance facility. $5m with ratchet to $15m.

High risk sector/trading jurisdictions. PLC. Required truly unique structure to fit current and future requirements.

——————————————————————————————————————————

UK based SME owned by large single Family Office. Trade globally. Bespoke financing package to support leveraging their receivables and a revolving credit line to support acquisition of new assets required to support new contracts. Total debt ￡4.5m. Blended rate 2.5% + BR. 4 year commitment from lender.

?

Securities Backed Finance

A HK resident holding blue chip stocks, each $3,000,000 USD. 72% LTV for a two-year loan. Lender opted to keep dividends rather than charge interest. Dividends of 2.96% which grosses up to 4.1%.

——————————————————————————————————————————

A Scandinavian entrepreneur leveraging their carried Interest to raise liquidity for personal use, was offered a finance amount of $4,000,000 against $30 Million of carry, on a 60-months term, with a Preferred Return equal to 1.75x the finance amount.

——————————————————————————————————————————

A C-suite executive with a shareholding in a major Middle Eastern traded company, received a $30,000,000 loan (in a single tranche) at 55% LTV, with a fixed 4.00% interest over a 5-year term. They retained full dividends and voting rights.

***********************************************************************************

And that’s it for this round up I would love to know if this is valuable / useful.

_____________________________________________________________________

DISCLAIMER:?These overviews are based on real scenarios and outcomes. The details have been anonymised and generalised to protect the identity of those involved.

Where we have quoted rates, the actual rate available will depend on your circumstances and are subject to lender variation at any time without notice, and are subject to lender underwriting.

?

IF YOU ARE CONSIDERING SECURING OTHER DEBTS AGAIN YOUR MAIN HOME, SUCH AS FOR DEBT CONSOLIDATION PURPOSES, PLEASE THINK CAREFULLY ABOUT THIS AND CONSIDER ALL OTHER OPTIONS AVAILABLE TO YOU. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR OTHER DEBTS SECURED ON IT.