Summary
We recently helped a high-net-worth client arrange a £9.5 million lending facility to fund the purchase of a property abroad as part of his plans to move overseas.
The client had a strong income, several investment properties generating rental income and an investment portfolio worth more than £30 million. The challenge was that he would no longer be a UK taxpayer following the move and did not want to arrange a mortgage against the overseas property or sell investments to fund the purchase.
After reviewing the available options, we identified a suitable private bank that could structure the borrowing as a lombard loan, secured against his UK investment portfolio. This provided an initial £9.5 million drawdown, allowing the client to purchase the overseas property as a cash buyer while keeping his investment portfolio intact.
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The Scenario
We worked with a client who had built up significant wealth and was preparing to move overseas. He had found a property in Europe that he wanted to buy as his new home. Rather than go through the process of arranging a mortgage in a foreign country, he was looking for a way to use his existing assets in the UK to fund the purchase.
The client had a strong financial background, with a high income from a corporate role and several investment properties generating rental income. He also had a large portfolio of shares and funds which he was happy to use as security for the loan, rather than sell them down.
The Challenge
This wasn’t a straightforward case. Most lenders were put off by the fact that the client would no longer be a UK taxpayer once the deal completed. On top of that, the property being bought was overseas, and the client didn’t want to use it as loan security.
For most lenders, the size of the loan and lack of traditional property security would be a deal-breaker. We needed to find a lender who was prepared to take a different view and consider the wider picture of the client’s assets and income.
The Process
We identified a private bank that specialised in dealing with complex, high-value cases like this. From the outset, we made sure they had a clear understanding of the client’s financial profile and the reason for the loan.
Since the loan would be secured against investments rather than property, it needed to be structured as a lombard loan. These loans are often quicker to arrange than a standard mortgage, and can be a good option for clients with significant investment portfolios.
We worked with the lender to make sure they were comfortable with the client’s residency plans, income, and asset base. Underwriting was detailed, but smooth, and we kept all parties aligned throughout.
The Solution
The private bank offered a large lending facility secured against the client’s UK-based investment portfolio. The portfolio value was over £30 million, with an initial drawdown of £9.5 million to go towards the purchase of the European property.
There was no need to sell investments or go through the slower and more complex process of applying for a mortgage overseas. The loan was arranged under UK law, keeping things familiar and efficient for the client.
Why It Worked
The loan gave the client what he needed, access to funds quickly, without having to make changes to his investment strategy or income setup.
It also meant he could buy the property outright and move ahead with his relocation plans without delay. Using the investment portfolio as security kept the process simple, and avoided issues around overseas legal systems or tax treatment.
The Outcome
The client was able to complete the purchase as a cash buyer, which gave him a stronger position in negotiations and helped speed things up. He was also able to keep his assets invested.
This approach offered flexibility, speed and convenience, all key priorities for the client at this stage in his plans.
Helping Clients Make the Most of Their Assets
For clients with established wealth and more complex plans, a standard mortgage isn’t always the right fit. In this case, using a lombard loan gave a straightforward route to securing a major overseas property, using UK-based investments as security.
If you’re exploring options for financing a move abroad or want to understand how your assets could support your next steps, we’re happy to talk through the possibilities. Contact us today!
