EQUITY RELEASE

In a mortgage context, ‘equity’ is the excess of the market value of a property over the outstanding amount of any loan or loans secured against it. Equity release plans are designed to enable homeowners who do not have a mortgage on their property to release some of the equity in order to provide capital or supplement their income.

CASE STUDIES

Refinancing in Potts Point on commercial property 

  • Property details 

located on a main side street in Potts Point, the property was zoned mix use and facilitated short term accommodation.

  • What did the client want? 

The client was an Australian expat living and working in the UK. They were looking to offer their property as security to raise funds for future investments.

  • Key points

Some years ago, many mainstream lenders changed their view on accepting foreign income for servicing calculation.

  • What did we do? 

We worked the scenario with multiple lenders and provided a suitable solution.

  • Difficulties along the way  

The valuation came in lower than expected.

  • The end results 

We achieved a satisfactory result although due to the valuation the client received less cash out

 

Equity release for business expansion.

  • Business details

The business was an educational facility in South London.

  • What did the client want?

The client was a UK resident who had previously worked with our team here at Sherwood Finance. They had wanted to sell their company for £11m a year ago – although they instead opted to continue with the business to try and expand on it a little more.

  • Difficulties along the way

Since it was a loan backed by the client’s business and not an asset lend, there wasn’t any reliable security we had to offer. Most lenders are a little apprehensive to agree to offer a loan with these circumstances.

  • What did we do?

We work with countless different lenders, so it didn’t take us long to find one that would be able to help us. This one specialized in funding businesses that are trying to grow – and after negotiating and discussing certain details about the client and their needs, we came to an agreement that everyone was happy with.

  • The end result

The lender was keen to work with growing businesses, so we were able to get our client a loan of £2.5m on an unsecured basis. This gave them the opportunity to buy out a 10% shareholder and keep full control of their company.

LET US HELP YOU FIND

THE SUITABLE SERVICE

We offer an end to end financial solution with a focus on making the
process as simple and stress-free as possible.

LET US HELP YOU FIND

THE SUITABLE SERVICE

We offer an end to end financial solution with a focus on making the
process as simple and stress-free as possible.