- Client: Italian national
- Property: Luxury apartment, Eaton Square, London
- Property value: £3M
- Loan amount: £1.95M
- Repayment: Interest-only, 5-year term
- Margin: 2.85% per annum
Enness was approached by an Italian national looking to refinance a bridging loan previously used to purchase a luxury apartment on Eaton Square, London. The property was held in the client’s personal name and intended for their use when visiting the capital.
The refinancing was not straightforward. Other than the Eaton Square property, the client had no significant UK footprint and was resident full time in Italy. This immediately reduced the number of mainstream UK lenders willing to consider the application, particularly given the limited amount of additional UK assets available to support the case.
With the conventional lending market narrowed, Enness focused on finding a lender with an international outlook and a more pragmatic approach to non-UK resident borrowers. The client’s UHNW profile and the quality of the underlying security also needed to be considered alongside their residency.
Enness’ Jersey office provided access to lending partners accustomed to working with international clients and the offshore structures commonly administered in the Channel Islands. Through these relationships, we identified a lender willing to consider the transaction and refinance the existing bridge.
The resulting facility provided £1.95M against the £3M property, with a 5-year interest-only structure and a competitive margin of 2.85% per annum. This gave the client a longer-term financing solution and removed the need to rely on the existing short-term bridging facility.
The case demonstrates how international residency and a limited UK asset base can significantly narrow lender choice, even where the borrower has substantial wealth and high-quality property security. Access to specialist international lenders can therefore be particularly valuable when a conventional UK mortgage is not readily available.
Enness works with international and private banking lenders to arrange complex mortgage finance for non-UK residents. Our specialist teams can also assist with UK property finance where nationality, residency or asset structures require a more bespoke approach.
Disclaimer:
This case study is for illustrative purposes only and does not constitute financial, legal or tax advice. Finance is subject to status, underwriting, valuation, due diligence and lender criteria. Borrowing against property carries risk, and failure to meet repayment obligations may put secured assets, including property, 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.
