- Client: Nigerian and UK national, resident in Lagos, Nigeria
- Property: 4-bed multi-unit freehold block in London, valued at £1m
- Property ownership: Hong Kong SPV
- Loan Amount: £630,000
- LTV: 63%
- Product: 10-month bridging loan at 0.89% per month
Enness was approached by a client based in Nigeria who was looking to release capital from an unencumbered London property to help fund the purchase of another UK property. The client required a short-term financing solution, with the intention of repaying the facility in full from funds owed to their business.
The case presented several challenges for lenders to consider. The client was resident in Nigeria and worked in the oil and gas industry, which meant that some lenders viewed the profile as higher risk. The security also presented an additional layer of complexity, as the London property was held through a Hong Kong SPV. This ownership structure significantly narrowed the lender pool, as many lenders were unable to become comfortable with the structure and the associated legal considerations.
Flexibility was also important to the client. As the loan was intended to be short-term, they wanted the ability to repay the facility in full when the expected funds became available, without being restricted by significant early repayment penalties. It was therefore important to identify a lender whose criteria could accommodate both the international borrower profile and the ownership structure.
Enness identified a specialist lender that was comfortable with the circumstances and secured a £630,000 bridging facility at 63% LTV, with a 10-month term and an interest rate of 0.89% per month. The structure provided the client with the liquidity required while retaining the flexibility to repay the facility when their business funds became available.
Enness also negotiated a solution that did not require the client to travel to the UK to sign the loan documentation, which was particularly valuable given their residence in Nigeria. This helped streamline the transaction and allowed the client to progress with their wider property plans without unnecessary delays.
This case demonstrates how an international borrower, overseas SPV structure and specialist industry background can significantly narrow the available lending market. With experience in arranging bridging finance for complex and international borrowers, Enness can identify lenders whose criteria are suited to the specific circumstances of a transaction.
If you are looking to release equity from a UK property or require short-term finance for an acquisition, Enness can assess your circumstances and explore suitable bridging finance options. To discuss your requirements, speak to a mortgage specialist.
Risk Warning:
Bridging finance carries risks. Property values can fall, and delays or unexpected costs may affect your ability to repay the facility within the agreed term. If you do not meet the terms of the loan, the lender may take enforcement action against the secured property.
Disclaimer:
This case study is for illustrative purposes only and does not constitute financial, legal or tax advice. Finance is subject to status, underwriting, property assessment and lender criteria. Terms and availability will vary depending on individual circumstances. Enness does not provide legal, tax or investment advice, and lender introductions are unregulated.
Information contained in our case studies is for market and illustrative purposes only. In some cases, these may be made up of multiple cases and are for illustrative purposes only.
Some case studies are made up of enquiries that have come into the business, not all business completes, and the posting of a case study does not represent a completed piece of business.
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.
