Kensington & Ascot
Deal Highlights
- £1.29m gross bridge at 65% of the 180-day value over a 12-month term.
- Secured on two unencumbered assets: a Kensington flat and a new-build Ascot home.
- Equity release ahead of sale, funding the borrower's overseas investment programme.
- Overseas borrower resident in Dubai.
- One facility letter with two separate legal charges, so each asset can be sold independently.
- Proportionate paydown agreed on each sale, with interest serviced quarterly in advance.
The Challenge
Overseas investors holding UK residential assets are routinely declined by conventional lenders, however strong the security. This borrower — an international investor resident in Dubai — owned two unencumbered properties, a flat in a prime Kensington development and a new-build house near Ascot, and wanted to release equity ahead of their sale to redeploy capital into opportunities overseas. The standard underwriting toolkit simply did not apply.
The deal also demanded real diligence rather than box-ticking. The original purchases were funded by family wealth from overseas, so source of funds had to be established to a high standard, and both assets were recent new-builds — where headline values can carry a premium that an incoming lender must see through.
The Outcome
Berkeley Credit provided a £1.29m gross bridge at 65% LTV over 12 months, secured by first legal charges over both properties. Identity was established through dual verification for overseas residents, and source of funds was evidenced through confirmations from the law firm that acted on the original acquisitions, reinforced by an undertaking from a separate firm acting on the loan itself.
The structure was built around the exit. Both properties are on the market, so the facility sits under a single facility letter with two separate legal charges: as each asset sells, the borrower pays the loan down proportionately while leverage stays at or below day-one levels. Interest is serviced quarterly in advance, keeping the gross facility efficient for a borrower with a clear sale timeline.
Berkeley Credit. This case study is provided for information purposes only and does not constitute an offer of finance. Figures are rounded and correct at the time of completion.