Case Study · United Kingdom

Bridging loan for foreigner to purchase Mayfair property

30 July 2021

Bridging loan for foreigner to purchase Mayfair property

A foreign investor seeking to purchase a prime property in London’s Mayfair neighborhood faced a common challenge – the time it takes to secure a loan from a traditional bank. To overcome this challenge and secure the property in a timely manner, the investor turned to Rikvin Capital for a bridging loan. With its flexible and efficient lending process, Rikvin Capital provided the funds needed for the investor to successfully purchase the property and complete the transaction. By leveraging Rikvin Capital’s expertise in property financing, the investor was able to quickly and effectively navigate the complex process of securing a loan and achieve their real estate investment goals.

Related: Read about when Rikvin Capital helped a property investor to purchase additional assets with a refinance mortgage loan

  • Location: Mayfair, London, United Kingdom
  • Market Value: £4,150,000
  • Loan Amount: £1,300,000
  • Loan-to-Value: 31%
  • Duration of Loan: 6 Months
  • Payment Schedule: Rolled Up Interest Payment
  • Asset Type: Residential Apartment
  • Completion Time: 7 Days

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FAQ

I am a foreign buyer looking at prime central London property. Can you fund me?

Yes. Non-resident HNWIs are a core part of our UK book. We fund acquisitions in Mayfair, Belgravia, Knightsbridge, Chelsea, Kensington and the wider PCL. The Mayfair deal shown here closed at £1.3 million in 7 days for an overseas buyer who could not wait the 8 to 12 weeks a UK bank would have needed.

How fast can a Mayfair purchase be funded?

We typically release funds within 7 to 14 days of first enquiry, depending on KYC and legal complexity. The Mayfair borrower in this case completed in 7 days. Standard UK lenders take 8 to 12 weeks for non-resident high-end home loans, which is why overseas buyers come to us for time-critical deals.

Can I avoid monthly payments while I am based overseas?

Yes. Rolled-up interest means no monthly payments; the interest is added to the loan and paid at the end in one transfer. This is popular with foreign buyers who prefer not to maintain a UK monthly payment from abroad. The Mayfair buyer used this setup on their 6-month loan.

How much can I borrow against a prime London home?

We lend up to 70 to 75% of value on prime central London residential. The Mayfair borrower took only 31% (£1.3 million on a £4.15 million property) because they used the bridge mainly for speed, not maximum leverage. Higher gearing is available on request.