If you only ever thought that mortgages were just for those of us unable to buy their house outright – think again!
It was revealed this last week that Tesla and SpaceX entrepreneur Elon Musk mortgaged 5 of his homes in January. According to international finance broadcasting network, Bloomberg, Musk took out mortgages amounting to $61 million on the five properties which are all located in California: four in the luxury neighbourhood of Bel Air and the other in the Bay Area of San Francisco.
The mortgages were arranged by Morgan Stanley and account for $50 million of new borrowing for Mr Musk. Of the mortgages acquired one element was to refinance a 20,000+ sq ft property he had originally purchased for $17 million in 2012. The current debt on the property now stands at over £19 million (he originally took a £10 million mortgage on it). The repayment on this mortgage alone now stands at around $180,000 per month.
The new mortgage loans acquired by Elon Musk are set to run for a 30 year period and have a fixed interest rate of 3.5% for the early period. They will then either need to be remortgaged or will fall onto a SVR (standard variable rate).
Bloomberg commented on the reason why a person worth over $23 billion would require $61 million in mortgages; “The loans show how even the wealthiest people use mortgages to maintain liquidity.”
Whether it’s a multi-million pound remortgage or a new build Help-to-Buy for a first-time buyer, at One 77 we have a team of specialists who can help with all your property finance requirements. Give our team a call on 01249 474952 or complete the form below and we will be in touch at the time of your choosing.