Helping an international family meet their property goals through a regulated mortgage solution
A wealth planner, private bank and investment manager all-in-one.
Our clients’ wishes
We were introduced to a high-net-worth family who wished to purchase a £2,000,000 residential property in London for two daughters who had recently graduated.
To reflect the family’s circumstances, the proposed transaction required a regulated mortgage structured with three borrowers, while the daughters alone would hold the legal title. The family sought an interest-only facility of £1,100,000, representing a prudent loan-to-value ratio of 60%, together with a lender able to assess the wider family wealth position and accommodate the bespoke ownership structure.
Our clients’ situation
Mr X, the primary borrower, was a German national resident in Switzerland with more than 30 years of senior leadership experience across real estate, investment advisory and major international businesses. He was the founder and chief executive of a Swiss investment advisory firm, held a 40% shareholding in the business, and had previously held chief executive and chief financial officer positions within a leading Swiss real estate and construction group.
The daughters were at the beginning of their careers, so neither income was used for affordability purposes. Instead, the assessment was based solely on the primary borrower’s evidenced salary and a conservative proportion of his established bonus income, resulting in a strong monthly net disposable income position once all expenditure had been assessed and cross-referenced.
Furthermore, the case was further strengthened by Mr X’s net asset position of approximately £4 million, comprising of unencumbered properties, cash and liquid investments. This liquidity, alongside the strength of his business interests, provided additional comfort beyond conventional affordability measures.
Mr X’s strong financial position and substantial liquidity provided additional comfort, supporting the overall affordability assessment and the successful completion of the transaction.
Our clients’ outcome
After considering the family’s income, liquidity and wider asset base, we were able to structure a bespoke £1,260,000 regulated interest-only mortgage over a 10-year term.
The facility was arranged at 60% loan-to-value, subject to professional valuation, and structured as a triple-borrower, joint-proprietor transaction to meet the family’s ownership objectives.
The repayment strategy included periodic capital reductions from salary, bonus and dividend income, supported by a liquid investment portfolio and two unencumbered overseas properties. Sale of the security property also remained available as a final repayment option.
The solution enabled the family to complete the London property purchase while retaining substantial liquidity and establishing a new private banking relationship. It also demonstrated the value of a personalised approach for internationally based families whose circumstances require flexible structuring and a holistic assessment of wealth.
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Contact
Get in touch to find out how we can help you with your financial challenges.
Clients of Nedbank Private Wealth can get in touch with their Wealth Adviser directly to understand how wealth planning can help them achieve their financial goals and objectives, or call +44 (0)1624 645000 to speak to our client services team.
If you would like to find out more about how we can help you with wealth planning support, please contact us on the same number as above, or complete the contact us form using the link below.
Investment values can go down, as well as up, to the extent that you might get back less than you originally invested. The value of your investments may also be affected by exchange rates. The inclusion of any investment structures and wrappers is for information only and should not be taken as advice or a recommendation. You should seek the necessary advice, specific to your circumstances, before making any financial decision.
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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.
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