Find out about our approach to Prime Central London residential lending

For centuries, London has consistently attracted high net worth (HNW) individuals from across the globe to live and work. The availability of prime residential property right in its heart has always been a key draw.

We have a wealth of experience and a strong appetite when it comes to lending in this exclusive sector.

Our lending philosophy is based around two key considerations: the properties themselves and the people looking to own them.

Prime Central London is seen as the gold standard of residential property

The type of property generally classed as “prime” can typically be found in areas of the West End of London such as Mayfair, Knightsbridge, Chelsea, and Belgravia.

All of these are within close proximity to everything central London has to offer HNW individuals, seeking a lifestyle befitting their wealth, including Michelin-starred restaurants, high-end boutiques, and world-class entertainment.

From a lending perspective, we see Prime Central London residential property as a stable asset class which justifies relatively low yields.

This is often down to not being affected by the same issues we encounter with more typical residential lending such as affordability, or the yield on buy-to-let portfolios.

Buyers could have complex income arrangements

Our experience has taught us that there’s a certain category of person who is seeking this type of property.

Primarily, this will be HNW offshore borrowers, who often have complex and varied income streams from multiple jurisdictions.

Furthermore, many of the ownership vehicles can involve a level of complexity, such as trust structures based in low-tax regimes like the British Virgin Islands.

This inevitably means there are a different set of parameters to take into account compared to standard residential borrowing, and pragmatic yet sensible approach when it comes to onboarding clients of this kind.

Typically, borrowers in this market sector will have relationships with private banks that will underwrite based on funds under management.

Our specialist lending insight can be invaluable to borrowers

Central London has a restricted supply of prime residential property, but also has extremely high demand due to the attractive nature of London’s amenities and also as it is a global centre for businesses.  

Asset liquidity is a key consideration. Higher value properties usually take longer to sell. This can sometimes result in reduced leverage for properties which sit at the top end of value relative to the location. A £5m property in a quiet rural town is considerably less liquid than a £5m property in Mayfair, so perhaps a higher LTV on the property in Mayfair rather than the rural one would be preferable.

Our High-Value Single Unit mortgage product provides a bespoke service to foreign nationals and others with complex financial arrangements for who our specialist mortgage insight and business agility can be invaluable.

Get in touch 

If you’d like to find out more about our residential lending proposition and how we can help you and your clients, give us a call.