Case study: High value mortgage for entrepreneur

The borrower

Our client recently sold his award-winning business with an annual turnover of over £100m. The sale of business transaction was mainly funded by loan notes and corporate leverage debt.

The problem

The case presented two challenges: the unusual nature of the property and the complex nature of the client’s income.

The client wanted to purchase a new main residence in a super prime location on the south coast. The unique nature of the asset made it more challenging to estimate a realistic market valuation.

Having sold his business and taken a dramatic reduction in income, Investec had to understand the sales transaction to be able to structure a loan facility that met the clients LTV requirements and satisfied affordability requirements too.

The solution

After careful and detailed risk analysis of the client’s business sale transaction which included various different scenarios, we were able to confirm that the nature of the sale and the performance of the business provided sufficient income to meet affordability requirements.

Investec was also able to commission a highly specialist valuation to undertake an appraisal of the property to ensure it provided appropriate security.

We offered a £7.8m mortgage, on a five-year interest-only basis, with capital reductions made in the early years of the term.

Important information

Your property may be repossessed if you do not keep up repayments on your mortgage. Investec residential mortgages are only available for residential properties in England or Wales and are primarily available to UK residents and subject to eligibility.