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Navigating complex finances to secure an offshore client's dream home

Our client’s background

Mr P is a resident in the Isle of Man with a diverse portfolio of business interests predominantly based in the UK. Despite currently renting, he and his family recently found a unique property they wished to purchase for £3.3million. To facilitate the purchase, Mr P sought to borrow £2.475million, equating to a 75% Loan-to-Value (LTV), with the goal of completing the transaction by the end of 2024.

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Our clients’ situation

To better understand Mr P’s circumstances, we arranged a virtual meeting to discuss his financial position and objectives. Mr P has a complex income structure which is generated through a British Virgin Islands (BVI) holding company of which he is the 100% shareholder, along with two subsidiary companies.

While Mr P’s overall income and affordability were robust on paper, the flow of cash within his businesses and his capacity to access personal funds posed initial hurdles. To navigate these challenges, we worked closely with Mr P to gain a full understanding of his financial situation, which he was able to promptly provide.

Together, we devised a bespoke lending solution for Mr P with a part interest-only and part repayment mortgage. This structure included an annual bullet repayment commitment to gradually reduce the LTV over the five-year term, providing confidence to both Mr P and the Bank.

Together, we devised a bespoke lending solution for Mr P with a part interest-only and part repayment mortgage.

Our client's solution

Mr P was initially having difficulty finding a lender capable of fully grasping the nuances of his financial arrangements. He expressed a preference for a bank that could ‘think outside the box’ and foster a deeper, long-term relationship to support his future investment and wealth planning goals.

By working closely with Mr P, we were able to quickly obtain the necessary information and prepare a detailed credit proposal. Within a week, we submitted a comprehensive application to our Lending Team which was swiftly approved within five working days.

The property’s valuation has since been completed and the completion of the purchase is on track to meet the original timeline, ensuring Mr P and his family can move into their new home before the end of 2024.

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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.

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