The lender was approached by Fitch & Fitch on behalf of the client who needed to move the properties into a UK special purpose vehicle (SPV) from an offshore SPV.
During the construction phase, the value of London property had declined in value and offers received were lower than expected. The finance was re-arranged to provide a five-year fixed rate product so the properties could be held until market conditions.
As the properties were no longer at a tax advantage due to being held in an offshore SPV, the client was advised by an accountant to move them onto a UK SPV as being offshore meant it was restricting lender choice.
A property being held in an offshore SPV means shares can be sold usually without being subject to capital gains tax or Stamp Duty Land Tax. Also, only the basic rate on income tax will need to be paid.
Due to the complex nature of the case and the large loan amount, the application was presented to Kent Reliance’s transactional credit committee to give an early indicator of whether the case would be accepted and if further evidence would be required.
A long form valuation on all nine flats was agreed which saved the client £7,500 in specialist valuation fees.
Adrian Moloney (pictured), sales director at OneSavings Bank, said: “As an experienced specialist lender, our broker partners know that we welcome complex cases as we have the expertise and knowledge to get these cases over the line.”
David Wise, head of business at Fitch & Fitch, added: “There is no doubting when the subject is big loans that Kent Reliance for Intermediaries are a part of any conversation.
“The final complement to their offering is their criteria and underwriting with a wealth of experience and a dedicated large loan underwriting team. The seemingly complex cases are considered coherently and positively adding to their overall service.”