Large Loan for a Listed Castle In Scotland

A family office managing the wealth of a prominent UK family engaged Fox Davidson to finance the purchase of a historic castle in Scotland, valued at £5.5 million. The family sought a £3.5 million interest-only mortgage to fund the acquisition while maintaining capital for other investments, with plans to use the castle for private use and occasional event hosting.

The castle’s Grade A listed status and its dual use as a private residence and commercial event space made it a complex asset for lenders, who were concerned about resale value and maintenance costs. The family office’s income, derived from a mix of dividends, rental properties, and private equity, required careful structuring to meet lender affordability requirements. The family also demanded a long-term fixed rate to ensure payment stability.

Fox Davidson partnered with a private bank experienced in heritage properties in Scotland. They secured a £3.5 million interest-only mortgage fixed rate for 10 years. By presenting a comprehensive business plan for the castle’s event income and leveraging the family’s substantial liquid assets, Fox Davidson overcame lender concerns.