Securing competitive investment funding for clients based overseas

What was the situation?

My clients, one a UK citizen and one a South African citizen based overseas, already owned an investment property in the UK and were buying their second. This was a new build bought off plan having already exchanged on the purchase, but had been unable to secure financing using traditional methods.

The property, located in the North of England, was a new build flat in a largely investor led development. As a result, a lot of traditional lenders would not lend against the property. They wanted to borrow the maximum leverage possible on a purchase price of £260,000, having already put down a deposit of £75,000. 

What was the issue?

The clients had previously approached their existing lender who had agreed funding on their first property, but the lender had declined to fund the second. They were now on a tight deadline and needed to move fast.

The main issue was that a lot of lenders would not lend on that type of development, especially when the clients were based overseas. This significantly reduced the lenders that would consider providing funding solutions.

What was the process?

Using my lender relationships, I was able to approach the credit committees at my short listed lenders directly and explain the application in detail. I put forward a strong case that would offer the lender confidence in the clients risk profile, and was able to agree a loan at high leverage with one particular lender who was keen to consider the case. They agreed, on the basis that we would complete in as quick a time as possible.

What was the solution?

The final facility was exactly what the clients were after. I was delighted that I could negotiate with the lender to secure strong terms, obtaining 75% gross LTV of the lenders valuation.

The clients were very happy to complete on time, and delighted to secure competitive funding terms despite being overseas.

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