Facilitating a £11.5M Refinance for a Complex Offshore Ownership Structure

• Client: Offshore fund with a complex ownership structure
• Location: London
• Loan Amount: Circa £11.5 million
• Loan Term: 5-year interest-only facility
• Interest Rate: Circa 6% p.a.
• Property: Converted office building comprising 55 luxury apartments

Enness was approached by an offshore fund looking to refinance a converted office building in London. The property comprised 55 luxury apartments, and the fund required approximately £11.5 million of refinancing on a five-year interest-only basis.

While the property itself provided substantial security, the transaction was complicated by the ownership structure and a number of issues surrounding the property's planning and title documentation. The fund had multiple ultimate beneficial owners across different jurisdictions, meaning the lender needed a clear understanding of the ownership structure before the refinancing could progress.

There were also historic planning matters to resolve. Ambiguities within the original planning consents meant that appropriate indemnities needed to be considered and put in place to address the lender's concerns. This required close coordination between the borrower, lender and legal advisers throughout the transaction.

A further issue emerged with the Land Registry plans. Plans provided by a previous lender contained inaccuracies, meaning they needed to be reviewed and corrected before the new lender could be satisfied with the title. Enness worked with the relevant parties to identify the discrepancies and ensure they were addressed as part of the refinancing process.

With the ownership, planning and title issues being worked through, Enness secured a circa £11.5 million facility on a five-year interest-only term at approximately 6% p.a. We also negotiated the early repayment provisions to better align with the client's wider plans for the property and worked with the legal teams to ensure the necessary indemnities and protections were in place.

Resolving the Land Registry discrepancies was an important part of the process, as it enabled the lender to proceed with the required title position. The transaction ultimately provided the offshore fund with a new long-term financing structure while addressing the legal and ownership complexities that had initially made the refinance more challenging.

This case demonstrates how property finance can involve considerably more than simply assessing the value of an asset. Where a transaction involves offshore ownership, multiple jurisdictions, historic planning matters or title discrepancies, identifying a lender comfortable with the full picture can be critical.

For property owners and investment structures with complex ownership or refinancing requirements, interest-only mortgage solutions can provide greater flexibility over the term, subject to lender criteria and an appropriate repayment strategy.

If you are looking to refinance a high-value property with a complex ownership structure, speak to a mortgage specialist to discuss your requirements.

Disclaimer:
This case study is for illustrative purposes only and does not constitute financial, legal, tax or investment advice. Finance is subject to status, valuation, underwriting, legal due diligence and lender criteria. Interest-only borrowing requires an appropriate repayment strategy, and property values can fall as well as rise. The details of this case have been anonymised and generalised where appropriate.