The case in brief
- Client: Hong Kong national and resident
- Property type: Buy-to-let Refinance
- Property value: £23m
- Loan Amount: £16.1m
- LTV: 70%
In this case, a new client, who was referred by an existing customer, approached us to raise capital to fund the construction of a retail park in Hong Kong. They had been let down at the last stage by another lender and needed the funds as quickly as possible or faced suffering severe penalties due to the delay in construction in Hong Kong. Fortunately for the client, we have expertise in securing quick high-value financing.
Suppose you’re currently searching for property finance although living overseas. In that case, our page, UK Mortgages For Residents in Hong Kong, could be a worthwhile read – To find out how we do it, explore our Overseas Mortgages page.
Our client
The client was a Hong Kong national who owned two large buy-to-let, valued at £12m and £11m, respectively.
Although they had a large amount of worldwide wealth, their only current income was derived from the properties in question. Typically, this can be a problem for lenders as they like to see other income to cover any rental lapses or shortfalls. The other caveat was that the released equity was being invested in an overseas scheme – most lenders require the released equity to be used in a local scheme or a market that they are comfortable with.
Our solution
After an initial consultation with one of our brokers, we were able to produce terms on the same day and submit a well-packed and present the application to the lender the following day. The lender was an offshore bank (based in the Isle of Man), so we were comfortable with the international aspect and the fact that the released equity was for an overseas project.
Our broker ultimately secured financing in less than a month, minimising any penalties the client was accruing. We also began work straight away on a refinance to better the rates the client was facing from a bridge. Take a look at our bridging guide for more information.
Bridging is a very flexible way to solve problems in a short amount of time. However, it can be expensive, and therefore it is essential to use a broker. Get in touch with one of our experienced team.