| What's the FreeSpirit Solution? |
It is the opportunity to finance your
real estate downpayment or entire project with interest-only repayment
while still retaining participation in your stock portfolio using a Structured Securities Loan
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John Shareholder wants to buy a new
house. He needs cash for a down payment, but believes some good news is
coming soon and doesn't want to liquidate his favorite stock position -
now worth £150,000. The house costs £500,000 and he needs £100,000 for
a down payment.
Solution: With a Structured Securities Loan, he receives up to 85% (95% with Premier on selected securities)
of the value of the stock on a limited recourse basis. If his
securities rise in value, that growth is his; and if it goes down or he
cannot make the payments for any reason, he can exercise his right to
default on the loan (with no reporting to credit bureaus) and the
collateral fully satisfies the loan obligation.
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Behind the Numbers:
The good news?
Either way, he keeps the capital he needed for financing his home purchase, while, his securities keep working for him in the marketplace.
Example:
- He owns 15,000 shares of stock currently priced at £10 a share and puts them up for his Structured Securities Loan.
- With
his portfolio worth £150,000, @ 85%, this yields £127,500 in cash to
put towards his downpayment, with £27,500 left over for furniture or
other expenses.
- Note that your Loan can be structured into an interest-only or interest-accrued format for client convenience.
- If a Premier is applicable, shares remain in your own account, never sold outright or traded, with only a conventional lien-style structure.
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