In addition to traditional mortgages, Enness can also arrange high-value short-term solutions such as bridging finance for high-net-worth clients. I recently organised a short-term funding solution for an Italian client who was resident in the UK and needed to raise £1.4 million against their residential property.
The client wanted to release capital to repay various existing debts. However, their income circumstances presented a challenge. Having been self-employed for around a decade, the client had recently closed their company and started a new role with an investment company.
At the time of the application, the client had only recently started the new position, meaning the available evidence of income was largely limited to their employment contract. This confirmed a basic salary of £200,000, which on its own was insufficient to support the level of borrowing required.
The employment contract also referred to additional potential income, including a significant bonus scheme and payments relating to specific deals. The client therefore needed a short-term solution that could provide the required capital while allowing time for their new income structure to become established.
OUR SOLUTION
I approached a private lender with experience of assessing complex cases on an individual basis. The lender was able to take a broader view of the client’s circumstances, including the expected additional income outlined within the employment contract.
I secured a regulated bridging loan of £1.4 million, with the client also able to roll the interest into the facility rather than making monthly interest payments. This provided greater flexibility while the client’s new income arrangements developed.
The proposed exit strategy was based on the anticipated bonus and deal-related income from the client’s new role. Once their cash flow became more established, the intention was to refinance the bridging facility onto a longer-term mortgage.
This case demonstrates how specialist international mortgage expertise and access to flexible lenders can help when a borrower’s income has recently changed and conventional affordability calculations do not fully reflect their expected financial position.
Read the UK version of this case study.
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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.
