Securing a £5.4m facility for a Russian born entrepreneur

At Diamond Property Finance, we excel in crafting bespoke financial solutions for high-net-worth individuals, often navigating complex international backgrounds and substantial existing financial commitments. This expertise was essential when a client with a significant property in West Hampstead approached us to secure funding for home improvements ahead of a planned sale.

Case Profile:

The client, a UK passport holder originally from Moscow, had a distinguished career as an entrepreneur, having left Russia 45 years ago and lived globally before settling in the UK over 25 years ago.

They sought a £500,000-second charge bridge to fund minor refurbishments on their 8-bedroom detached house valued at £9.5 million, to increase its market value to around £10.5 million. However, a major hurdle arose when their private bank, holding a £4 million first charge mortgage, refused to consent to an additional loan on the property.

Solution:

Given the complexities due to the client’s international background and the significant first mortgage, we shifted our strategy to seek a first-charge loan that could offer the necessary flexibility for the client’s sales timeline. After updating the loan application, we engaged with various lenders that specialise in high net worth circumstances, aiming to structure a deal suitable for a 12-month refurbishment and sale plan.

We successfully negotiated with a lender who showed particular interest, leveraging our strong relationship to not only present the client’s case effectively but also secure favourable terms. By reducing our commission, we arranged for the client to benefit from a lower interest rate. Ultimately, we secured a £5.2 million facility available immediately, with an additional £200,000 accessible if needed, all on a 12-month term.

The financing was arranged swiftly, within 11 working days, allowing the client to commence the refurbishment in time for the summer, with plans to sell the property later in the year and repay the loan.