Lifetime mortgage for clients with assets offshore and HNW income in Euros

What was the situation?

Our clients, both in their mid 60s, were looking to sell their high value London property. It still had a sizeable mortgage on it, but they were keen to free up their equity to purchase a new home in Southwest England ahead of semi-retirement.

The property they were buying was a stunning period country home set in a highly sought-after part of the country.  Their offer had been accepted at £2.25m, and they were looking to borrow £850,000.

What was the issue?

As part of our initial call we discussed repayment with the clients, and they confirmed they would be happy to service the interest monthly. Immediately, this opened up more options to them however, their age presented an obstacle.

Additionally, one applicant was a high-end professional who had lived in UK for a long time, but had overseas assets in a trust that they were keen to leave offshore due to potential tax charges. In addition to this trust, they also benefitted from a significant earned income but part of it was received in Euros, so couldn’t be used by UK banks.

Due to the client’s complex income structure, the application was originally being explored by an adviser within our Private Client team but upon weighing up the clients age and requirements, the team decided it would be better placed with an adviser in our Later Life Lending department.

What was the process?

Our advisers explored what lending solution might be suitable if sourced from a high-street bank, but most of the lenders we approached were unable to achieve the borrowing amount required with the client’s non-standard income.

Having previously discussed repayment with the clients, we knew their ideal loan was an interest-only loan, serviced monthly helped to reduce the interest rate. This, combined with their age, meant we needed to discuss our client’s application directly with later life lenders, to find a solution that fitted the clients needs.

What was the solution?

By utilising our close relationships with market leading later life lenders, LDN Finance was able to source a lifetime mortgage that provided clients with the full borrowing they required. Partnering closely with lenders, we were able to negotiate with them to go outside of normal product terms to make the numbers work for the client.

Had we not sourced the lifetime mortgage, the clients may have ended up committing to smaller loans with standard lenders, but this would have resulted in them bringing their offshore assets into the UK, subsequently paying a higher tax rate.

The clients were delighted that we moved quickly, thereby securing discount on the property and securing a mortgage in 8 days. They were thrilled to exchange and complete within three weeks of initial application.

Are you exploring the option of a lifetime mortgage? At LDN Finance we’re here to help you find a solution – no matter how complex your circumstances. Our expert brokers have extensive experience in providing creative solutions to secure large loans for our clients.

We work closely with our trusted network of private banks and both high street and specialist lenders to arrange bespoke mortgage arrangements to suit your circumstances at competitive, market-leading rates.

Get in touch with us to organise an initial consultation.