Equity Release for a High Net Worth Individual on Unique Property

• Client: UK National and Resident
• Property Value: Circa £8.5 million
• Loan Amount: £400k
• LTV: 5%
• Term: 5-year regulated bridging loan

Enness was introduced to a UK-based client who owned a property in North West London outright and was looking to raise additional liquidity to support their living costs ahead of a planned downsizing. The property was valued at approximately £8.5 million, meaning the client had significant wealth tied up in a single asset.

The client had multiple income sources across different currencies, but their income was not sufficient to support the level of borrowing required through a conventional mortgage. Rather than selling the property immediately, the client wanted to retain it on the market and wait for more favourable conditions before agreeing a sale.

The nature of the property created an additional lending challenge. It was a former artist’s studio, with a significant proportion of its value attributed to its unique characteristics. The property had already been placed on the market and the client had received several offers, but was prepared to wait for the market to improve before accepting a price closer to their expectations.

The client therefore required a highly flexible short-term financing solution. They wanted to avoid making monthly interest payments, instead rolling the interest into the facility, and also required no early repayment charges because the property could be sold at any point during the term.

Given the client’s substantial asset position but limited conventional income, Enness identified a specialist bridging finance solution designed for borrowers with significant property wealth who may not meet conventional mortgage affordability requirements.

Enness secured a £400k facility against the property, representing just 5% LTV, on a five-year regulated bridging term. The extended term was particularly important because regulated bridging finance is commonly offered over much shorter periods. The structure gave the client significantly more time to find a suitable buyer while preserving flexibility around the eventual sale.

The low LTV also provided the lender with substantial security relative to the amount being borrowed, helping support the transaction despite the client’s unconventional income profile and the unique nature of the property.

By using the equity in the property rather than requiring the client to sell immediately, the facility provided access to the liquidity needed for living costs while allowing the client to remain in control of the timing of the eventual sale. The absence of early repayment charges also meant the client could repay the facility when the property was sold without incurring an additional penalty, subject to the agreed terms.

This case demonstrates how specialist lending can provide liquidity for high-net-worth individuals whose wealth is concentrated in valuable but illiquid property assets. Where conventional affordability criteria do not reflect the borrower’s wider financial position, a bespoke high-net-worth bridging finance structure can provide an alternative route to accessing capital.

If you hold significant wealth in property but have limited conventional income and require flexible short-term finance, speak to a mortgage specialist to discuss your circumstances.

Risk Warning:
Bridging finance carries risks. Interest can accumulate where it is rolled into the facility, increasing the total amount repayable. Borrowers should have a clear and realistic exit strategy, particularly where repayment depends on the sale of a property. Failure to meet the terms of the facility could result in 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 and the proposed transaction.