Case study: Client purchases townhouse in Central London
2 min read
A broker recently introduced a brother and sister who were looking to purchase a buy-to-let property which was a four-bedroom house in central London. He worked in the legal sector and she was an academic.
The property was owned through a SPV as the sole asset and the client would be acquiring the shares of the SPV in order to purchase the property.
Lending to a SPV structure can be a challenging proposition for some lenders as it requires specialist knowledge of tax and legal restrictions. At Investec, we understand that high-net-worth individuals will often have specific and complex needs and we relish working with them to create the best solution.
To achieve their goals, the clients’ family office has created a new SPV which will purchase the shares of the existing SPV, including its equity and debt. The new SPV is to be held within a trust managed by the family office, of which the clients are the sole beneficiaries.
We were able to approve a loan of £1.9m, on a 10-year interest-only term. It is secured against the property, the SPVs and supported by personal guarantees from the clients. This allowed our clients to have a mortgage that both offered the lowest impact to their cash-flow and ensured they are in a position to take advantage of a SPV borrowing structure already in place.
2 min read