Fast bridge for West African UBO borrowing in an East Asian SPV 

• Client: Dual National
• Residency: West Africa
• Property Portfolio: Circa £8 million
• Loan: £5 million+
• LTV: 70%
• Purpose: London buy-to-let acquisition and portfolio refinancing

Enness was approached by an existing client looking to expand their buy-to-let portfolio in London. The client had identified a property valued at approximately £4 million that they intended to purchase and modernise, with the aim of increasing its value over time. To fund the deposit required for the acquisition, the client wanted to release equity from their existing property portfolio, which was valued at approximately £4 million.

The transaction presented several challenges. The client’s links to West Africa significantly reduced the number of lenders able to consider the application, given the additional risk considerations associated with the jurisdiction. The proposed transaction was also unsuitable for conventional mortgage finance because both the new property and elements of the existing portfolio were undergoing works and were therefore not currently habitable or lettable.

The client required a high level of borrowing to make the acquisition viable. A facility below 60% loan-to-value would not have provided sufficient funding, meaning Enness needed to identify a lender with the appetite to provide a higher-LTV bridging finance solution against a complex portfolio and international borrower profile.

Enness approached specialist private lenders and successfully negotiated a 70% LTV bridging facility. The structure provided the level of borrowing required to support the purchase while also allowing equity to be released from the existing portfolio.

The borrowing entity was an East Asian SPV, which introduced an additional legal requirement. The lender required a legal opinion from a local lawyer before completion, adding another element that needed to be coordinated as part of the transaction. Subject to completion of this requirement, the facility was expected to complete within the client’s required four-to-six-week timeframe.

The lender was also comfortable with the properties undergoing works, provided that a credible and stable exit strategy could be demonstrated. This flexibility was important because the client’s properties were not currently generating their normal rental income while works were being undertaken.

The case demonstrates the value of accessing specialist lenders when a transaction falls outside conventional lending parameters. Rather than focusing solely on the client’s residency, the condition of the properties or the requirement for a high LTV, Enness considered the wider portfolio and the proposed exit strategy to identify a lender with an appropriate appetite.

Privately funded bridging lenders can sometimes provide greater flexibility than mainstream lenders because their funding structures and underwriting approaches can differ. In complex transactions involving international borrowers, SPVs, properties undergoing works and higher LTV requirements, this can create additional financing opportunities, subject to lender criteria.

If you are looking to expand a UK property portfolio and require high-net-worth bridging finance for an acquisition or equity release, speak to a mortgage specialist to discuss your circumstances.

Risk Warning:
Bridging finance is short-term borrowing and carries risks. Borrowers should have a clear and realistic exit strategy, particularly where properties are undergoing works and are not generating rental income. Failure to meet the terms of a facility could result in enforcement action against secured properties. Property values can also change, which may affect the available equity and refinancing options.

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.