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OTHER SERVICES OFFERED BY SPF PRIVATE CLIENTS: • •
Independent Financial Advice Private and Commercial property insurance
Making it happen
CONTENTS Why choose us?
3
Residential property
6
International property
8
Farms and Estates
10
Commercial property
12
Residential self-build
14
Other services and contacts
16
OUR SPECIALIST KNOWLEDGE MADE IT HAPPEN
Case study
Our client A wealthy entrepreneur who wanted to build a 33,000 sq ft dwelling of which nearly half was underground basement, featuring twin bowling alley, cinema, swimming pool and gymnasium, plus underground car parking for his extensive vintage car collection. He owned a piece of land with planning permission valued at £1.55M and build costs estimated at £3.70M, giving an overall value upon completion of £5.25M. Our solution The client had a 30% deposit and we were able to obtain the remaining 70% funding via a carefully selected specialist lender. Importantly, stage releases were based on a loan-to-cost ratio, instead of on valuation, allowing our client to drip-feed his 30% contribution as the build progressed. The client has now completed his build and for the first time can view his 18-car collection all under the one roof.
Stage releases were based on a loan-to-cost ratio, instead of valuation, so our client could dripfeed his 30% contribution as building progressed.
RESIDENTIAL SELF-BUILD IT’S ALL ABOUT CASH FLOW
The key to financing the building of a property is understanding the construction process and the impact this can have on cash flow. The stage release of funds to match the contractor’s payment schedule is crucial. Simply put, most brokers, and indeed most lenders do not understand this specialist area. SPF Private Clients’ self-build team understand cash flow models and the importance of making funds available as invoices become due. The banks we work with appreciate our expertise in this area and work with our team to turn projects into reality.
WHY CHOOSE US? Every business is built on relationships, and that is what makes us special, that is what makes things happen. As one of the largest property finance brokers in the UK, we have been servicing our clients for over 14 years. This has allowed us to build connections that have created unparalleled access to retail, private and commercial lenders, and long-running relationships with key decision makers within banks. We also maintain close relationships with trustees, lawyers, tax specialists and accountants. We have been able to make all of this happen because SPF Private Clients was created with the sole function of servicing the top-end of the market.
WE’VE BEEN MAKING IT HAPPEN FOR OVER 14 YEARS
WHOEVER YOU ARE, WE CAN MAKE IT HAPPEN Whether it is a UK private individual or family, or an overseas national purchasing or refinancing property, we can cater for a range of scenarios: • • •
Purchase or refinance In own name Via a trust, limited company or partnership
Some clients prefer to borrow using a combination of suitable onshore or offshore vehicles.
OUR INSIDE KNOWLEDGE MADE IT HAPPEN
Case studies
Our Client - An individual with a £40M residential investment portfolio made up of 100 tenanted properties in London looking to refinance and expand their portfolio.
Our Client - A property developer looking to build student accommodation in London.
Our solution
Our solution
We refinanced the entire portfolio raising 60% of the portfolio’s value at 2.25% over LIBOR on a five-year term, based on a 20-year repayment schedule. It was arranged on a non-recourse basis. We also negotiated an additional 5% ‘hunting facility’ to allow the client to take advantage of other opportunities in the market.
SPF Private Clients successfully arranged funding for a new 165bed student accommodation development in London. Funding of 70% loan to cost was secured. Post development, the loan facility was transferred to a medium-term investment loan, with minimal amortisation over the duration of the loan term.
SPF Private Clients also successfully arranged funding for a new 165-bed student accommodation development in London.
COMMERCIAL PROPERTY – IT’S ABOUT KNOWING WHAT’S OUT THERE Investing in commercial property can be an extremely complex area depending on the tenant, lease terms, type of property and location. Our experts can advise you on the best way of structuring your particular deal. We offer clients a wide range of funding for residential portfolios, development, commercial and retail investment opportunities, industrial units and office space. We also specialize in specific trade sectors including: healthcare, student accommodation and hotels. Our team has a successful track-record in financing numerous
developments as well as established trading businesses. We are a highly experienced team that knows which banks are in the market and their current lending criteria. We have close relationships with the underwriters at lending institutions and work closely with legal teams and accountants to ensure our clients secure debt under flexible conditions and at a competitive price.
DEBTS WOULD TYPICALLY BE SECURED AGAINST ONE OR A COMBINATION OF: • • • • • •
Prime residential property in London and other regional centres Country houses Agricultural and sporting estates Portfolios of prime residential property Commercial property Overseas property
Having specialist teams means we can offer the highest level of service on Residential, International, Farms and Estates, Commercial, or Residential SelfBuild projects.
OUR DEPTH AND BREADTH OF KNOWLEDGE MEANS WE CAN CATER FOR A RANGE OF SCENARIOS
RESIDENTIAL PROPERTY EVERY ONE IS DIFFERENT Whether you are an individual, trustee, buying or selling agent, we provide the high level of professional service that we know is demanded. We understand that property may not be held in an individual’s name for tax or privacy reasons and more importantly, that nothing is standard.
OUR IN-DEPTH UNDERSTANDING MADE IT HAPPEN
Case study
Our client
Our solution
A gentleman who had grown a successful commercial property business over the past 30 years. As a result, he had accumulated a substantial asset base including two estates - one in the South East and one in Scotland worth a combined ÂŁ18M. These provided security for several million pounds of debt but with little surplus income to pay the interest. The result was that the lender needed to take account of the wider income generated from the commercial property business. The assets were held in a combination of trusts and personal names, which added further complexity to any debt structuring.
SPF Private Clients refinanced the whole portfolio, including several thousand acres, mansion house, dozens of secondary residential properties and a portfolio of commercial properties, to a lender who understands both the client and the rural estate assets. In this process additional liquidity was released to assist the client with other projects. The terms achieved offered a five-year interest only facility and provided a substantial saving in both annual fees and interest costs. We also worked closely with the client’s Finance Director to maximise tax planning benefits. These included placing debt against assets which will not obtain inheritance tax relief and ensuring that interest costs can be offset against income tax.
We also worked closely with the client’s Finance Director to allow placement of debt against assets that will not obtain inheritance tax relief and to ensure costs would be offset against income tax
FARMS AND ESTATES A COMPLEX AREA
Unlike residential property, farms and estates typically comprise a mix of security including a main house, let residential portfolio, agricultural land and other commercial property and activities. Estates are often split into several ownership structures as a result of long-term tax and succession planning. In particular the advantages of 100% agricultural and business property reliefs (APR & BPR) for inheritance tax purposes, means that clients can dramatically reduce their potential IHT liability by strategic placement of the debt against non-relievable assets. Our clients vary, from someone who is purchasing an estate but wants a level of gearing, to existing estate owners wanting to refinance for a variety of reasons. They might need to raise finance which will be reinvested into the estate, or be looking to raise some cash to give to a family member.
EXCEPTIONAL SERVICE MADE IT HAPPEN
Case study
Our client A senior bank executive looking to buy a new £7.5M family residence in Mayfair. The property needed some building work and the client did not want to sell his existing home until the new property was completed and ready for occupation. Our solution We used our contacts to negotiate an extremely competitive £7.5M loan with 100% finance using both houses as collateral on a five-year term – just 1% above Bank of England Base rate (pay rate 1.5%). The deal was completed quickly, with bank valuations, building surveys and currency transfers (the client held much of his wealth offshore) co-ordinated through SPF Private Clients.
We used our contacts to negotiate an extremely competitive £7.5M loan with 100% finance using both houses as collateral on a five-year term
INTERNATIONAL PROPERTY – IT’S ABOUT OPTIONS Many of our clients either own or expect to acquire property outside the UK – either as a second home or as an investment. We have a specialist international team who use a range of local and offshore banks to source finance in a number of countries outside the UK including: • France & Monaco • Spain (Mainland and the Islands) • Portugal • Switzerland • Italy
• • • • • •
United States Australia & New Zealand Canada Dubai Hong Kong & Singapore Caribbean
SPF Private Clients is able to arrange finance for purchases, remortgages and equity release.
OUR FLEXIBLE APPROACH MADE IT HAPPEN Our client
Our solution
A Saudi resident was keen to obtain the maximum loan-to-value available for purchase of a €6.5M townhouse in the 16th arrondissement of Paris. In part this was to help reduce his wealth tax in France. The client’s other concern was to avoid any early repayment charges as he received significant dividends each year.
We secured €4.8M of funding by working with a bank to provide bespoke terms and our client was offered two competitive options: either half the loan amount on a variable basis (2.75%) and the other half on fixed rate for 15 years at 4.05% with no early repayment charges; or a 10-year fixed rate loan at 4.15% with no early repayment charges at any time. He opted for the latter option and the deal was completed three weeks later.
We secured €4.8M of funding by working with a bank to provide bespoke terms and our client was offered two competitive options
Case study