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Providing a Lombard loan solution to a client purchasing a London flat for their son

Our clients’ wishes

Our clients, based in Dubai, were looking to buy a flat in London for their son, who had just graduated from university and was starting his career with a leading investment bank in the UK. They aimed to secure a £2.8 million loan to purchase a flat in Knightsbridge, ideally located in the same building as their London family residence.

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Our clients’ situation

Mr and Mrs X already had significant financial assets, including an investment portfolio and a single stock holding through a British Virgin Islands (BVI) structure, managed by Nedbank Private Wealth. Due to the limited time to complete on the property purchase, they needed a swift solution to secure the flat without delay. Traditional mortgage options were considered, but they would require additional steps such as property valuations and legal checks, which would delay the tight timeframe.

Mr and Mrs X already had significant financial assets, including an investment portfolio and a single stock holding through a British Virgin Islands (BVI) structure, managed by Nedbank Private Wealth

Our client's outcome

After considering various options, we recommended a Lombard loan. This type of loan allowed Mr and Mrs X to use their investment portfolio as security, quickly accessing the funds needed to gift to their son. By choosing this option, they avoided the additional costs and time delays usually involved with a standard mortgage. Since the funds were being gifted, the process was simpler and faster than with a regulated loan.

With legal and tax advice, the clients confirmed that gifting the funds was the appropriate approach for them. The Lombard loan offered favourable terms, with a low interest rate of 0.85% above the Bank of England base rate, over a 10-year period in line with the clients’ planned retirement. With a robust 32% loan-to-value coverage, the Credit Committee approved the loan promptly, allowing the clients to meet their completion deadline.

In the end, both the clients and their broker were pleased with the quick and efficient solution, enabling their son to secure the desired flat in Knightsbridge on time.

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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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