Providing a corporate buy-to-let facility for a UAE-based client
A wealth planner, private bank and investment manager all-in-one.
Our clients’ wishes
We were approached by a client looking to raise capital against an unencumbered UK investment property held within a limited company structure.
Our client, a UAE-based British national who has lived and worked in Dubai for several years, wished to release equity from the property to fund extensive renovations and improvements to his primary residence in Dubai. Time was an important consideration, as the renovation project was due to commence within two months and contractors had already been engaged.
The proposed facility was £600,000 secured against a property valued at £1,000,000 representing a loan-to-value of 60%.
Our clients’ situation
As the client was permanently resident in the UAE, we undertook a detailed review of his financial position. This included reviewing his income as a practising solicitor, alongside his broader asset base and overall wealth profile.
The underlying property was a well-located residential investment asset in London that had benefited from a strong letting history and demonstrated consistent rental performance over a number of years. While the rental income comfortably serviced the existing level of borrowing; there was a modest shortfall when applying the lender’s stressed affordability calculations.
Despite this, the overall risk profile remained strong. The client had an established professional career, significant liquid assets held in both the UK and overseas, and substantial cash reserves. These factors provided reassurance that any unforeseen periods of vacancy or increased borrowing costs could be absorbed without difficulty.
Following submission of the credit application and supporting documentation, approval was approved within a week, with the onboarding process taking less than two weeks to finalise.
Our clients’ outcome
We structured a £600,000 interest-only corporate buy-to-let facility over a 10-year term, secured against the UK investment property.
The facility was arranged on a variable rate tracker basis, providing maximum flexibility and allowing the client to make ad-hoc capital reductions without incurring early repayment charges.
The funds released through the refinance were used to support a major renovation and enhancement project at the client’s Dubai residence, helping him unlock value from an existing investment asset without the need to liquidate other investments.
Following submission of the credit application and supporting documentation, approval was approved within a week, with the onboarding process taking less than two weeks to finalise. The client was delighted with the outcome, securing competitive terms and a flexible borrowing structure tailored to his needs. We are now progressing the transaction with valuers and solicitors, with the anticipated completion date scheduled for the end of August.
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Clients of Nedbank Private Wealth can get in touch with their private banker 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.
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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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