£20.3 million loan for Mayfair pied-à-terre
The situation?
I was approached by a family office working on behalf of an UHNWI, wanting to secure a London pied-à-terre ready for when their family arrived in the UK. As a Romanian entrepreneur, the client was extremely successful having built a career in the pharmaceutical industry, travelling around the world on business regularly.
Working in partnership with their family office, the property they were looking to finance was located in Mayfair with an asking price of £29 million.
The solution?
The complexity with this case was that the client had little to no income to evidence. They had sold their business a few years prior to us meeting and made many seed investments in new or upcoming businesses. But, despite the client being an UHNWI they couldn’t prove a regular income. This meant I had to demonstrate the client’s wealth in other ways.
Previously, the family office had already spoken to another lender. The facility they had managed to secure required the client to adhere to £6.7 million of assets under management (AUM). I believed that our outstanding relationships with many of the leading private banks meant that LDN Private Clients were in a good place to negotiate a better deal.
By leaning on our long-standing partnerships, I was able to negotiate £5 million AUM, at a more competitive interest rate. We also worked on the basis that we would book the loan offshore in the interest of tax efficiency.
In making these changes, I successfully secured a £20.3 million loan, interest only and fixed for 2 years. The interest rate was also very competitive compared to what the family office had been quoted previously. By working together and leaning on my expertise, we were able to secure a better solution for the client ahead of purchasing their new property.