AREA: South Kensington
AMOUNT RAISED: £3.5 million
PRODUCT USED: Bridging loan
In the heart of South Kensington, a high-net-worth family faced a unique challenge. They needed to secure funding for a promising serviced apartment project, but their foreign national ties posed significant hurdles. Our team rose to the occasion, crafting a bespoke solution that not only met their immediate needs but also laid the foundation for long-term success.
Client Scenario
Our client, a UK Special Purpose Vehicle (SPV) representing a high-net-worth family, aimed to purchase a block of 11 non-income producing apartments in South Kensington. Their vision involved transforming these units into profitable serviced apartments. However, the family’s foreign national ties to a specific region complicated the funding process, requiring extensive anti-money laundering (AML) checks.
Funding Solution
We secured a £3,500,000 facility, covering 50% of the property’s value. This five-year term deal featured a reduced annual rate, tailored for the serviced apartment asset.
The package included:
- A six-month period with no payments, allowing for light cosmetic renovations
- From the seventh month, a fixed 5.49% annual rate for five years
- No Assets Under Management (AUM) requirement, making it a “dry lend”
To overcome the AML challenges, we introduced the client to lawyers who could evidence 25 years of AML compliance, satisfying the rigorous requirements.
Final Outcome
The borrower successfully acquired the property and completed the planned renovations. From the seventh month, the asset began generating income, with the client benefiting from the competitive fixed rate. Impressed by our persistence and expertise, the borrower became a loyal, repeat client.
This case demonstrates our ability to overcome complex challenges in property finance.
By understanding the unique needs of foreign nationals and leveraging our extensive network, we turned a potentially problematic scenario into a profitable venture. Our innovative approach not only secured the necessary funding but also established a lasting client relationship, showcasing our commitment to client success in the competitive London property market.
