£1.2 million equity release for HNWI with no regular income

What was the situation?

My client was a high net worth individual (HNWI) who was in a strong liquidity position after having recently sold a successful technology business. He had decided to stop working for a period of time and therefore could show no ‘traditional’ income from an employment perspective. The same client was looking to secure a sizeable equity release from an unencumbered asset he owned in central London (valued at £1.8 million) with a loan of £1.2 million, to help fund living costs for him and his family for the next five years whilst he focused on raising his young children.

What was the issue?

Without a traditional income stream, mainstream retail banks – who will ultimately offer the most competitive interest rates – are typically unable to assist with cases such as this due to their stringent affordability criteria. Essentially, this would result in my client needing to pay a higher interest rate to achieve his requirements.

What was the process?

After engaging a trusted private bank with whom I have a strong working relationship, I was able to lean upon my client’s strong liquidity position and status as an HNWI, as opposed to their regular income streams. It was clear to see that the client could easily service the mortgage debt over the next five years from their cash savings and investments.

What was the solution?

I was able to secure a variable product at 2.49% for the next five years, raising the £1.2 million loan with minimal fuss – a brilliant rate secured for my client considering his lack of traditional income. Not only was the released equity enough to cover my client’s expenses including considerable school fees, but he would now be able to turn his attention to spending time with his young family after an intense period of work commitments.

Lending solutions with LDN Finance

Are you looking to secure an equity release mortgage on an existing asset? At LDN Finance, our expert brokers work closely with our trusted network of private banks and specialist lenders to arrange bespoke lending arrangements to suit your circumstances at competitive, market-leading rates. Get in touch with us today to organise an initial consultation.