LONDON, July 25, 2016 /PRNewswire/ --
In January Borro, the secured lender to the wealthy, lent £2.15M to a client who was purchasing a new build property just off Victoria Street in Westminster. The property was a new build and the client - a Non-Dom investor in the London property market - put down a deposit in 2013 while the property was still under construction.
Despite the client's Non-Dom status, Borro was able to extend a 74% LTV based on a valuation of £2.9M, allowing the client to complete the purchase of the property in January 2016. The loan was redeemed by the client last week as the property was successfully sold a month earlier than the client had planned for £2.8M.
"Borro has a history of working with Non-Dom, HNW clients on the luxury asset side of the business," Claire Barrington-Jones, Director of Sales said. "This property was a luxury investment just like a work of art or a classic car. Despite the uncertainty of the last month the client was able to turn a profit. It is an encouraging sign that the property sold for just 3% less than the valuation placed on it 7 months ago."
Although Brexit has created some volatility, Borro has seen only moderate declines in demand for property loans, and significant step up in demand for luxury asset loans.
"Specific parts of the property market, such as the top end of London, may shift in the coming months. That said we expect property lending below £1M to be as strong in Q3 as Q2. We expect a major step up in luxury asset lending."