- Client: Jersey national and Swiss resident
- Property: Jersey residential property
- Loan Amount: Circa £1.3 million
- Repayment: Interest-only
- Additional Security: Personal guarantee from a high-net-worth individual
Enness was approached by a Jersey national and Swiss resident who needed short-term finance to complete the purchase of a residential property in Jersey. The client had agreed the purchase but needed approximately £1.3 million of funding to complete the transaction.
The deadline was exceptionally tight. The client contacted Enness on a Monday and needed the capital to be available by Friday of the same week. Given the size of the facility and the amount being borrowed against the property, finding a lender willing to move quickly while providing the required level of leverage was the central challenge.
The Jersey legal process added another layer of urgency. Property transactions in Jersey complete through the Royal Court, with transactions taking place on Fridays. The documentation therefore needed to be agreed and ready in advance of the court date, leaving very little room for delays once the finance process was underway.
Enness approached suitable specialist lenders and used its relationships within the Jersey market to identify a provider able to consider the transaction and the client's requirements. The resulting facility provided approximately £1.3 million on an interest-only basis, with a personal guarantee from a high-net-worth individual forming part of the security package.
Once the terms had been agreed, Enness worked closely with the lender, legal advisers and the other parties involved in the purchase. Coordinating the financing alongside the legal process was particularly important given the fixed court timetable and the limited time available.
The transaction was completed within the client's required timeframe, providing the capital needed to proceed with the Jersey property purchase.
This case demonstrates why bridging finance can be particularly useful when a property purchase has to move ahead before longer-term finance can be arranged. Where a transaction involves an international client, a high-value facility and a fixed completion deadline, the structure of the finance and the lender's ability to move quickly can be just as important as the headline rate.
Enness also arranges international bridging finance for clients purchasing property outside their country of residence. The suitability of any facility will depend on the property, jurisdiction, security available, borrowing requirements and lender criteria.
If you need short-term finance to complete a property purchase within a tight timeframe, 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. Bridging finance is short-term borrowing and may carry higher costs than conventional mortgage finance. Finance is subject to status, valuation, underwriting, legal due diligence and lender criteria. Failure to meet repayment obligations could put secured assets at risk.
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.
