Property lender Together has provided a loan of £3.47 million for a customer to invest in an exclusive holiday home in Mallorca.
The High Net Worth (HNW) customer, a property investor from London, wanted to raise capital to buy the impressive villa on the Spanish island, while releasing additional funds to invest back into their limited company.
Together agreed to provide a 12-month unregulated bridging loan to the customer’s limited company, of which the borrower is the sole shareholder.
The short-term loan was secured against the client’s vacant buy-to-let property, a multi-million pound four-bed home in St James’s, London. Together has also taken a second charge over the customer’s house, a Kensington mews property, meaning an overall LTV of 66%
The finance has allowed the client to buy the second home and they plan to exit the unregulated bridging loan by selling the St James’ property within the next 12 months.
The customer had a great deal of equity in two prime London properties, so we were able to cross charge on the applicant’s buy-to-let and residential properties, held in their limited company name. This enabled Together to open the door to the client’s ambitions of expanding their property portfolio through acquiring the Mallorca villa.
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