Being a majority shareholder in a global business can have its complications; however, adding to that, a global pandemic impacts distribution logistics – most lenders would decline.
However, our advisers are experts at complicated circumstances and managed to turn a decline into an accept, allowing our client to secure a mortgage to purchase their new London Property.
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Our client, who owns 75% of a global business, suffered massive logistical delays caused by the pandemic, with a lack of container space and longer shipping times collectively impacting the amount of working capital held by the business. Despite the company being debt free, with an overdraft facility set up but not utilised, the pandemic had caused a lot of complications to the business accounts. It, therefore, affected our client’s income and business cash flow.
Our client wanted to borrow £2.9m on a partial interest-only facility at 85% loan to value, limiting the options available.
Our client wanted to leave as much profit in the business as he could to ride the current storm following the pandemic and therefore needed some flexibility from a lender to allow him to borrow £2.9m on a partial interest-only facility.
A relationship with a private bank was the only option and despite them declining the case initially, our adviser managed to overturn this decision by putting together a cash flow strategy for the business and agreeing for the client to make annual lump sum payments to pay down the LTV by up to 10% over 5 years.
Our client was delighted with the mortgage arranged and their new home.