Key Details:
- Client: UK-based entrepreneur and property investor
- Property Type: London investment property
- Property Value: Circa £8 million
- Previous Financing: 18-month bridging loan
A UK-based entrepreneur and experienced property investor held an £8 million London investment property financed via a short-term bridging loan. While the bridge provided speed for acquisition, the cost was high, and the fixed maturity created imminent refinancing risk. The client’s personal income was modest, with wealth concentrated in company assets and dividend-led drawings, complicating affordability assessments with traditional lenders.
Enness repositioned the transaction around asset strength, conservative leverage, and sustainable rental income. We sourced a private bank willing to underwrite the client’s global assets and structure long-term finance. The refinance was arranged at circa 60% loan-to-value, with rental cover of approximately 1.5x at the underwriting rate. A five-year interest-only tracker facility with no early repayment charges preserved flexibility and long-term optionality.
Pre-agreed credit and aligned legal/funding processes ensured the bridging loan was refinanced ahead of maturity, reducing interest exposure and replacing short-term debt with a long-term solution. The client retained portfolio growth flexibility and avoided costly bridge extensions.
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Property values can fall as well as rise, and you may not get back the amount originally invested. Property investments can be illiquid and may take time to sell. Where borrowing is used, your property may be repossessed if you do not keep up repayments on a mortgage or other loan secured against it.
