Prime London Purchase Using Bolivian Offshore Trust Income For £3.65m Mortgage
At Mesa Financial our specialists are experienced at finding the right financial solutions, even in some of the most complex of cases.
Borrow to purchase an investment property
In this case our client wanted to purchase a second investment property for £3m in prime central London. They already owned an investment property valued at £3.5m unencumbered.
The client’s goal was to create an additional income stream and acquire another London asset but crucially, they did not want any cash flow interruptions to their offshore trust. As a French national with no UK income, we needed to demonstrate a suitable repayment vehicle and serviceability of the £3.65m mortgage. This becomes even more difficult as the jurisdiction of the trust being held in Bolivia.
Thankfully we are well connected and have considerable experience in arranging bespoke lending deals with private banks. We were able to approach one of the banks who we have a great relationship with.
Meeting the criteria to borrow as a foreign national
To qualify the client with this bank, we were able to use the value of the trust where we could also demonstrate liquidity of the assets within the trust to be able to service the mortgage for any rental shortfalls. We presented a strong case for the client which meant that the bank was satisfied with the overall structure. In fact, they were able to sanction the loan without the requirement to hold any of the client’s funds or to charge the trust.
The result for the client:
- £3.65m loan – enough to cover the purchase, stamp duty, legal costs and other associated fees
- The entire loan came out at 1.95% over base rate on a 5 year product
- Total LTV – 55%
- The client was able to purchase the new property without having to use any personal cash
- No AUM
The Mesa Financial Service
If you need to borrow a large amount for a UK or international mortgage, it is always worth contacting the Mesa Financial team to see how we can help you. We always aim to add value to our clients by finding a deal, often bespoke, with carefully negotiated terms to suit the client’s interests.
All of this with the friendly and professional service that we have become renowned for. We look forward to working with you.