Releasing equity following the purchase of a new family home in Guernsey
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Our clients’ wishes
One of our broker partners introduced us to a couple seeking a £2 million regulated interest-only remortgage against their newly purchased primary residence in Guernsey. Having acquired the property for £4.25 million in cash, they wished to release equity to replenish their liquidity and support their wider property investment activities.
Our clients’ situation
The clients had recently relocated from the UK to Guernsey after selling the property management business they had developed over approximately 20 years. They received substantial proceeds from the sale, retained an equity interest in the enlarged group and subsequently established a Guernsey-based family office focused on property investment.
As the clients’ new ventures were still developing, they did not yet have the consistent recurring income typically used to assess affordability. However, with net assets of approximately £27 million and significant cash reserves, affordability could instead be assessed against their existing liquidity.
A portion of their available cash was allocated across the proposed five-year term, taking into account the interest it could earn and stressed assumptions for annual living costs and debt repayments.
The £2 million refinancing proceeds were excluded from the assessment, demonstrating that their existing cash resources alone were sufficient to meet these commitments throughout the facility term.
Following the purchase of their new family home in Guernsey, we helped the clients release £2 million in equity through a tailored lending solution supported by their substantial wealth and liquidity.
Our clients’ outcome
The solution enabled the clients to restore liquidity after purchasing their new family home while maintaining a prudent lending structure supported by substantial assets and a low loan-to-value.
The tailored assessment recognised that the clients were in a transitional period following the sale of their business and the creation of new investment ventures. By taking a holistic view of their liquidity, net worth, track record and multiple repayment strategies, we were able to support their borrowing request without relying solely on newly established income streams.
The case demonstrates our ability to provide flexible, considered lending solutions for high-net-worth clients with complex financial circumstances, while creating opportunities to develop a broader investment and banking relationship over time.
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