£2.5m lombard loan secured for redevelopment properties

Image of £2.5m Lombard Loan Secured for Redevelopment Properties case study.
Thursday March 17, 2022

Are you looking for development finance? We are experts at arranging large loans with private banks who are happy to lend to individuals with a complex financial structure.

To discuss this or any other large mortgage case, please contact us.

Case Profile

A client approached us seeking £2.5m to fund a redevelopment project involving two unencumbered properties. The properties in question were to be used as their main residence in London and a holiday home in Scotland. Although the client has significant investments of £6.7m, almost all of it was one AIM (alternative investment market) listed stock which he did not want to liquidate.

The client was a founder of a successful business that he had sold in return for a sum paid in instalments across several years. The client does not have a regular job, and payments received from the business are regarded as a non-traditional income. Consequently, not many banks were happy to lend to him.

Solution 

We approached elite private banks to see if there was a way to use the single line of stock as security rather than the properties. We sourced a private bank that liked the client’s profile and was familiar with his stock, which they already have in their own managed portfolios. For this reason, the bank offered an unusually high LTV of 38% in the form of a Lombard loan against the listed stock. The loan was structured as a renewable revolving facility without any non-utilisation clauses, which essentially means that the client could draw funds as and when he needed them. He would only pay interest on any money he withdrew. The client had all the funds he needed to complete both projects at a very low cost. This straightforward, cost-effective solution was found by looking at the position holistically, rather than just focusing on the client’s original request for development finance.

Our client is thrilled to keep control of his investments and looks forward to redeveloping his properties.

Return to Our Case Studies

Our insights


We are the UK’s leading specialist in delivering innovative and bespoke financing solutions to global clients.

Reviews


Specialists in creating innovative and bespoke funding solutions.

Your home or property may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it. Changes in the exchange rate may increase the sterling equivalent of your debt. You may have to pay an early repayment charge to your existing lender if you remortgage. Think carefully before securing any other debts against your home.  

largemortgageloans.com is a trading name of Largemortgageloans.com Ltd, Aegon House, Ground Floor Suite, 13 Lanark Square, London, E14 9QD authorised and regulated by the Financial Conduct Authority (FCA). Our FCA registration number is 302228 and can be viewed by visiting the FCA website: www.fca.org.uk. The FCA does not regulate tax advice or some aspects of commercial, buy to let, overseas mortgages, bridging finance, finance and asset lending. Largemortgageloans.com Ltd is a licensed credit broker, and not a lender.

Largemortgageloans.com Ltd Registered in England and Wales No: 5070990 Registered Address: As above. The guidance and advice contained within the website are subject to the UK regulatory regime and is primarily targeted at UK customers. Calls may be recorded for training and monitoring.

largemortgageloans.com
Make An Enquiry

London Office (Main):

020-7519-4900

London Office (Main):

info@largemortgageloans.com

Largemortgageloans is a trading name of Largemortgageloans.com Ltd, Aegon House, Ground Floor Suite, 13 Lanark Square, London