Arc & Co. Set Themselves Apart By Advising Client On Refinancing 18 Property Central London Portfolio.

This situation may not seem out of the ordinary at first glance.  An 18 property portfolio valued in excess of £10m isn’t unusual, but the circumstances around the refinance made this a very complex deal.  Case studies like this demonstrate how advisers at Arc & Co differentiate from their competitors.  Daire Dowling, Managing Director of Arc & Co. Private Finance went well beyond what was expected and explains below why this was such an unusual case.

“The client wished to raise £6.3m against their £10.5m property portfolio in central London. Historic issues with rent, HMO licencing and planning made presenting the file to prospective lenders difficult. I worked closely with the clients tax advisers to switch the portfolio from a partnership to a Ltd company.  This allowed the portfolio to be as efficient as possible. Once the new company was setup a full transfer was carried out with clearance from HMRC, in writing, that a stamp duty exemption would be allowed for the transfer of the assets.  We then presented the client with a sharia compliant loan ,due to historic income being low, on a 5 year fixed rate at 4.3%.”

To speak to Daire about any finance requirement please use the contact details below:

Daire Dowling
Managing Director
Arc & Co. Private Finance

Tel: +44 (0)20 3205 2196
Mob: +44 (0)79 2936 9175
Email: daire@arcandco.com

Case Study – How To Mortgage A £14m Property With No Income

Calculating how much a client could borrow to finance a property used to be very simple.  Lenders would offer between 4 or 5 times their annual salary subject to the loan to value ratio.  Today calculating how much someone can borrow is a little more complicated with many different criteria being used to determine affordability.  At Arc & Co. our clients range from first time buyers through to high net worth individuals whose income is derived from multiple countries and in multiple forms.  A recent client fell into the latter category who was wanting to finance a £14m property in near Hyde Park, a prime central London location whose past residents include Sir Winston Churchill and the Earl of Mansfield.

Daire Dowling, Managing Director of Arc & Co. Private Finance, explains why the deal was so complex; “The client wished to raise £4m on a £14m property near Hyde Park after taking tax advice from their accountant.  The client didn’t have a traditional income stream, so we had to capitalise an investment portfolio in the background and put interest on account.  The main motivation for the client was to cut down on remitted income into the UK from overseas and to generate clean capital within the UK jurisdiction for living expenses and succession planning. We were able to achieve all of this.”

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Finance summary

• Loan: £4m

• Term: 5 year (interest only)

• Rate: 1.75% margin on 3 month libor

• Termination: No early repayment charge should the client decide to sell or pay down the loan for flexibility

If you would like to speak to an advisor about a property purchase or remortgage then please get in touch with the following link.