Client buys £10m country house and equestrian facilities
Borrower:
Private Individual
Loan amount:
£7m
Term:
20 years
Repayment:
Interest only
Security:
Country House valued at £10m
Loan to Value:
70%
Interest rate:
Split between 5 year fixed rate at 2.70% and variable tracker at 1.25% over BOE base rate (2019)
Summary
Ashbridge Partners enabled a successful business and property entrepreneur to buy a country house with 90 acres and equestrian facilities valued at £10m.
Using our established contacts with private banks, we successfully negotiated a high value mortgage with low ongoing payments.
The client is now enjoying his desired lifestyle, and will be reviewing finances with us again in 5 years time.
Goal
The property purchase represented the opportunity for our client to adopt a rural lifestyle.
They required £7m funding to purchase a country house with equestrian facilities, ancillary accommodation and approximately 90 acres of farmland.
Challenges
The client required 70% loan to value on a large mortgage.
The mortgage would be structured on interest only.
Due to the loan size, the client preferred to “hedge” the interest rate.
The security was mixed use, including residential and agricultural.
Added Value
- Using our established contacts with private banks, we negotiated and structured a mortgage to meet our client’s needs.
- Low ongoing payments were met by repaying the interest and discretionary lump sum repayments from the client’s business.
Next Steps
- A follow-up plan is in place – Ashbridge Partners will support the client in 5 years to review mortgage structure when the fixed term is coming to an end.