- Client: Dubai business founder
- Type of Property: London residential home
- Value of Property: £10 million
Hectocorn assisted an exited business founder from Dubai who was starting to explore the opportunity to purchase a home in London. The prospective buyer was looking to pursue new ventures but wanted a home in the UK to diversify their options and provide an overseas home for their family.
Hectocorn met the buyer at the Founders Forum event. We worked with them to secure a favourable mortgage agreement on a high-end property, brokering a dry lending agreement that removed the need for assets under management (AUM).
Luxury Home Property Search In London
The buyer sought a summer holiday home to escape to during the hot months in their native Dubai. They saw London as the ideal location for their family while enjoying easy access to Europe. However, they had no knowledge of the city and had no contacts within the London real estate market, so Hectocorn stepped in to guide them through their property search.
Ultra-high-net-worth individuals (UHNWIs) gravitate to highly sought-after London neighbourhoods like Chelsea, Knightsbridge, and Regents Park. For example, an 1820 mansion in Regent’s Park became the most expensive home in the world last year, valued at £250 million, surpassing the 2-8a Rutland Gate property in Knightsbridge, which went on the market at £170 million in October 2022. While billionaire Adar Poonawalla’s purchase of a Mayfair mansion for £138 million at the end of 2023 was the city’s second most expensive property ever purchased.
Luxury home sales in high-end neighbourhoods are on the rise, as evidenced by luxury real estate firm Beauchamp Estate. Their research found that the value of sales of homes priced over £10 million doubled in 2023 compared to 2022. As a result, sales hit £313 million compared to the £123 million total the previous year. The research finds this spike in sales has been led by American and Middle Eastern buyers seeking lavish apartments and luxury homes in prestigious London locations.
The buyer wanted a central city location that gave them and their family access to the benefits of central London, from galleries and museums to shopping and restaurants. They soon discovered a £10 million house in the heart of Mayfair and brought Hectocorn on board to guide them through the purchase process.
Unlock High LTV Dry Lending Solutions for Prime London Property
Securing A Luxury Home In London
To finance a luxury home in the high-demand neighbourhood of Mayfair, the buyer needed to secure a residential mortgage. Securing a residential mortgage on a high-value property requires specific lending criteria and working with specialist lenders to secure a favourable loan-to-value (LTV) and interest rate structure that maximises borrowing potential. The key benefits of the agreement included:
Dry Lending: Niche lenders may consider buyers’ diverse income streams, including asset-based lending, business profits, international earnings and investment returns. Most private banks require buyers to use as security against their mortgage for a high-value property. Hectocorn’s vast network enabled us to introduce the buyer to a private bank with experience in providing mortgages on luxury homes for non-UK residents. We secured a dry lending agreement that utilised the buyer’s wealth portfolio to secure a residential mortgage without requiring assets to be transferred.
Fixed Repayments: The buyer wanted a guarantee of regular, repeatable payments throughout the loan agreement, even if conditions or rates fluctuate. Our team leveraged the buyer’s income to negotiate a fixed 65% LTV ratio. Securing a high, fixed LTV was crucial as it guaranteed future monthly payments throughout the entire loan repayment term. The agreement avoided the risk of fluctuating payments that come with variable interest rates, providing financial clarity for the buyer and certainty of repayment for the lender.
Secure Your Luxury London Home With Hectocorn
Hectocorn specialises in securing favourable bespoke financing solutions on high-value properties for UHNWIs from all backgrounds. Our extensive experience supporting residential mortgage applications and established relationships with niche private banks enables us to secure the best possible mortgage deals. We can guarantee the most favourable terms and help you position your debt structure to maximise your borrowing power.
Our team of brokers specialises in helping buyers navigate the complexity of securing high LTV agreements and identifying the most appropriate lenders. We have demonstrable expertise working with private banks to help foreign national property buyers secure favourable mortgage agreements through dry lending. This approach can be vital to helping UHNWIs maintain liquidity without releasing or transferring assets to purchase a property.
We also regularly help Dubai investors purchase property in Dirhams, structure complex financial agreements that maximise their borrowing potential and secure terms they can’t through other high street lenders. So, whatever your circumstances, Hectocorn can help you secure financial flexibility with the most favourable residential mortgage terms.
Discover how Hectocorn can help you finance a dream home in London’s most sought-after neighbourhoods by getting in touch.
Frequently Asked Questions
Dubai nationals can access London luxury property finance through specialist lenders offering bespoke residential mortgage solutions with high loan-to-value ratios.
A dry lending agreement allows buyers to secure a mortgage without transferring assets under management (AUM) to the lender, preserving liquidity while financing a high-value property.
A fixed LTV ratio provides predictable monthly repayments, shielding buyers from interest rate fluctuations and ensuring long-term financial stability.
Prestigious areas like Mayfair, Chelsea, Knightsbridge, and Regent’s Park attract Dubai buyers for their luxury amenities, exclusivity, and strong investment potential.
Yes. Specialist brokers like Hectocorn can arrange financing structures that allow Dubai investors to purchase prime London property while managing currency considerations.