A high-net-worth entrepreneur needed to raise capital to fund extensive refurbishments on their £9.5M West Hampstead residence ahead of a planned sale. We structured a £5.4M first-charge facility to overcome the refusal of their existing private bank.
The Challenge
The client encountered several obstacles in securing the required borrowing:
- Refusal of Additional Lending: The client’s existing private bank refused to consent to a second charge on the property.
- Raising Capital: The client needed to remortgage to release equity in the UK to fund improvements and increase the property’s market value from £9.5M to £10.5M.
- Complex International Profile: The client’s background as a UK passport holder originally from Moscow required an underwriter comfortable with international high-net-worth profiles.
The Strategy
To structure a deal that met the client’s needs, we leveraged our network of specialist high-net-worth lenders:
- Pivoting to First-Charge: We shifted the strategy from a second-charge bridge to a first-charge facility, allowing us to refinance the initial £4M debt and provide the necessary capital.
- Specialist Lender Alignment: We approached specialist institutions that cater to international high-net-worth entrepreneurs and understand complex property situations.
- Flexible Drawdown Facility: We structured a facility providing £5.2M immediately, with an additional £200,000 accessible if needed over the 12-month term.
The Results
- Total Loan Amount: £5.4 million
- Loan-to-Value (LTV): 56.8% (based on £9.5M valuation)
- Term: 12 months
- Mortgage Structure: First-charge facility
- Key Outcome: The funding was approved and completed in just 11 working days, ensuring the client could commence refurbishment in time for summer.
Why This Matters
For high-net-worth individuals, standard bank restrictions should not prevent you from executing home improvements or an exit strategy. By taking a creative approach to raise capital for property investment, we gave the client the financial leverage to enhance the property’s value and maximise their return upon sale.
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Ready to remortgage to release equity from your high-value property? Book a consultation with our team today.