The client, who is Saudi-based, was looking to purchase a Grade-II listed house for his family who are based in the UK, requiring finance of £1.65 million. The case presented a number of complexities:
- The client required a large loan amount with a relatively high loan-to-value and required a facility whereby this could be paid down early upon sale of an unencumbered flat and their previous main residence.
- The client is a UK citizen, but a non-resident for tax purposes and earns income in Saudi Riyals.
- The client’s income is not straightforward but is made up of a basic salary and bonus in bank stocks with deferments.
- The property has a large annex with it's own council tax and utilities which many lenders do not like on account of the fact it could be let.
Solution and lending facility
This type of finance would be complex in usual circumstances, but given the current crisis is made somewhat trickier. In this case Private Finance was able to utilise its relationship with a UK private bank who can take a more holistic approach than high-street lenders. They were able to offer a mortgage for the full amount and split the products, enabling the client to reduce the borrowing upon the sale of their properties and overpay going forward dependent on bonus payments.