James and Angela have been clients since 2005, with our support for James also encompassing his business finances. Over the years, our relationship has widened to include their four children, parents and other members of the extended family.
The strength and depth of the relationship mean we know James’s financial profile extremely well, and we have also provided the couple with a mortgage on their main residence in Jersey.
The lending process
While they enjoy life in their current home, they have always dreamed of owning a beach-front property in a prime location on the island. Having tried to buy land in this sought-after area before, and been outbid, James was excited by an opportunity to buy a track of land for £2.5 million in a private sale. However, in order to proceed, the purchase had to be completed within 18 days or the land would be advertised for sale on the open market.
James needed to borrow £1.5 million, which is above our usual loan-to-value limit of 50% for a land sale. Following a call from our private banker, the lending team contacted James’s solicitors and also arranged for a valuation of the land. While we typically wait for the valuation to be completed, we started the internal approval process as soon as we instructed the valuation, given the tight timeframe.
The results
Because the amount was above our loan-to-value limit, we agreed with James that the additional sum would be set against his main residence. This required a further discussion when the valuation for the land came in 25% below the asking price, and we needed to revalue the main residence, as the last valuation was completed in 2015.
We also advised James that cash reserves in his business could quickly pay down some of the amount being borrowed, despite knowing that this process would take two months to achieve given the company was near its financial year-end.
The loan was drawn down in time for the purchase and the land acquired, despite a delay in completion due to the approval needed from the Royal Court for the transaction to go ahead. James appreciated our approach to the facility and the flexibility we provided given the tight timeline. James and Angela are now looking to draw up architect plans to make the most of the sea view for life as empty nesters in the future.
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Clients can borrow against a UK, Isle of Man or Channel Island-based residence, be it a home or an investment property. We also lend against investment portfolios, and loans can be denominated in Sterling, Euros or US Dollars.
To find out more about Nedbank Private Wealth’s bespoke lending services, please contact your private banker directly or call our client services team on +44 (0)1624 645000. Or you can get in touch using the links to the forms towards the end of this page.
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