
Large Mortgage for Business Owner with Complex Offshore Holding Company and Trust Structure
If your business has a complex ownership structure involving offshore holding companies and trusts, you’ll probably struggle to get a mortgage from a mainstream lender.
High street banks and building societies are set up to process ordinary mortgage applications in bulk. When things become too complex, it’s more efficient for them to reject your application and move on than it is to sink hours into your case.
This is when most people turn to a specialist mortgage adviser for help.
The Scenario
Our client approached us, having been turned down by multiple high street lenders due to his company's ownership structure.
He was the majority shareholder of a very successful home care business and was looking to use the net profits of his company to qualify for a £1.4m mortgage on a new £2.2m SE London home.
However, he was facing two main problems.
Firstly, his business was owned by an offshore company in Gibraltar, which itself was held in an overseas trust for tax purposes.
The lenders he’d approached had flat-out rejected his application as they’d struggled to verify the ultimate beneficial owners of the company.
It’s not as simple as just searching the business on Companies House as you would with a typical UK business. It’s an unusual scenario for which most lenders do not have the necessary expertise and procedures to process efficiently, so they don’t.
And secondly, the client also owned a separate business comprised of numerous activity parks throughout the UK.
As you have to declare all of your assets when applying for a mortgage, this business was also looked at by the lenders he’d applied with.
This issue here was that the company was loss-making and still in a relatively early phase of growth and development. Despite having great potential, the banks he’d applied with wouldn’t carry out a detailed overview of the business, and it was the nail in the coffin for his mortgage application.
The Solution
Our broker started by thoroughly understanding our client's overall assets and income streams.
With over £20m of business interests, it was a complex financial portfolio to digest. This was essential to getting the best deal for our client and successfully leveraging all of their wealth towards their mortgage application.
With the information gathered and our strategy in place, we contacted a private bank that we knew would undertake a bespoke analysis of our client's businesses and assets.
Our broker liaised with the clients’ accountant and the specialist underwriters at the lender to ensure they would accept the complex structure of the care business.
And the lender also carried out a more in-depth review of the loss-making business.
Although it was yet to make a profit, it had cleared most of its debt and could prove that it was now in a sustainable position to do significantly well in coming years - and throughout the term of the clients’ mortgage.
On the same day, we took our clients’ case to the lender, we had an initial ‘yes’ in principle, giving our client peace of mind. Within a month, we had a full credit approval subject to a valuation on the property, thanks to our broker’s commitment to the case.
Louis Levine
Finance Executive CeMAP
Bristol
0117 457 7862
Are you looking for a similar type of property finance?
Get in touch today and find out how I can help.
George Abouzolof
Finance Broker
Bristol
0117 403 3444
Do you need help sourcing your own property finance?
I have extensive experience securing UK mortgages for expat clients. Book a free telephone consultation with me at a time to suit you
Bridging Team
Clifton Private Finance
Bristol
0117 959 5094
Are you in need of a similar type of property finance?
Book a free telephone consultation with one of our bridging specialists today and see how we can help you.
Sam Baker
Finance Broker
Cardiff
0117 959 5094
Are you looking for a similar type of property finance?
As a specialist bridging adviser at Clifton Private Finance, I can take a holistic view of your situation and find the right finance solution for you. Book a free telephone consultation with me at a time to suit you
Fergus Allen
Finance Broker
Cardiff
0117 959 5094
Are you in a similar situation? I specialise in bridging finance at Clifton Private Finance - I will find you the best funding solution for your property transaction.
Book a free telephone consultation with me at a time to suit you
Jacob Phipps
Finance Broker
Bristol
(+44) 0117 959 5094
Are you looking for a similar type of property finance?
I specialize in helping international clients source residential and investment property finance for UK property. Book a free telephone consultation with me at a time to suit you
Jack Spillane
Finance Broker
Bristol
0117 959 5094
Mathew Phillips
Senior Finance Broker
Bristol
0117 959 5094
Are you in a similar situation? I specialise in bridging finance at Clifton Private Finance - I will find you the best funding solution for your property transaction.
Book a free telephone consultation with me at a time to suit you
Alex Chambers
Senior Finance Broker
Bristol
0117 403 4324
Are you in a similar situation? I am a specialist in residential and investment property finance for UK and international clients at Clifton Private Finance. Please don't hesitate to get in touch for a no-cost discussion of the finance you need.
Book a telephone consultation at a time that suits you:
Luther Yeates
Senior Finance Broker
Bristol
0117 244 5561
Are you looking for a similar type of property finance?
I have extensive experience finding residential and investment property finance for UK and international clients. Book a free telephone consultation with me at a time to suit you.
Sam ONeill
Senior Finance Broker
Bristol
0117 959 5094
Is your situation similar?
I am a bridging finance specialist at Clifton Private Finance. I can find a quick, cost-effective solution for the funding you're looking for. Book a free telephone consultation with me at a time to suit you
Robert Gibb
Senior Finance Broker
Bristol
0117 959 5094
Are you looking for mortgage or short-term finance for residential or buy-to-let property (including HMOs)? I have extensive experience in finding property finance solutions for UK and international clients, both as individuals and limited companies. Please give me a call and let me see what I can do for you.
Book ConsultationAdam Arnott
Associate Director
Bristol
0117 205 0214