a-swift-solution-for-a-french-familys-home-purchase-in-london-header-panoramic-view-of-London-skyline-skyscrapers

A swift solution for a French family’s home purchase in London

Our clients’ wishes

Mr and Mrs A are a French national couple renting a home in the UK. They reached out to us through their UK mortgage broker with the aim of purchasing a new family home for themselves and their three children in London for £925,000. For this, they needed a mortgage of £705,375 (74% loan-to-value) to complete the purchase by the end of January 2025.

 

Our clients' situation

The property they wanted to buy had 96 years remaining on its lease. Initially, Mr and Mrs A were looking for a 25-year mortgage. However, their broker informed them that the lease would need to be extended after the purchase. The couple had already been declined by other banks, as they required the lease extension to take place on the same day as the property purchase, and many lenders are unable to approve loans for properties with less than 80 years remaining on the lease at the end of the mortgage term.

The clients’ combined income meant affordability was also at the top of their limit. To support their case, we needed to assess their broader financial position, including any additional assets, to show they could afford the mortgage repayments.

 

To make the mortgage more manageable and reduce risk to the bank, we structured it as two parts: £475,000 on an interest-only basis and £230,375 on a capital and interest basis.

Our clients' outcome

Mr and Mrs A provided proof of owning a rental property in France, as well as significant liquid investments and cash savings. Their financial position gave us confidence that they could afford the mortgage repayments or repay the loan in full if necessary.

To make the mortgage more manageable and reduce risk to the bank, we structured it as two parts: £475,000 on an interest-only basis and £230,375 on a capital and interest basis.

 

Typically, the bank does not lend on properties with leases under 80 years remaining at the end of the mortgage term. To address this, we suggested a 14-year mortgage term, leaving 82 years on the lease at the end of the loan. The clients’ plan to extend the lease soon after completing the purchase strengthened their case further.

The application was submitted to our Credit Risk team and approved the same day. Both the broker and the clients were impressed with how quickly the process was completed. Mr and Mrs A are now looking forward to moving into their new home and plan to build a long-term relationship with us for future lending and wealth planning opportunities.

 

Related news

You may also be interested in the following Insights

Contact

Get in touch with a member of our team to find out how Nedbank Private Wealth can help you achieve your financial goals and objectives.

Email our credit specialists directly at [email protected] or call +44 (0)1624 645000 to speak to our client services team.

Any examples of investments and structures used are for illustrative purposes only. This case study does not constitute an invitation or inducement to buy any financial investment or service. None of the content constitutes advice or a personal recommendation. Individuals should seek professional advice, based on their jurisdiction and personal circumstances, before making any financial decision.

 

Discover how we can help
Image showing a father and son on a bike
Related case studies

Read about more clients we have helped

We have helped countless high-net-worth clients with their financial needs – some straightforward, some complex. Our bespoke approach, where we really get to know our clients, allows us to offer solutions that other wealth planners and private banks aren’t able to.

View all