Regulated Bridging Finance for Below-Market-Value Prime Central London Purchase Opportunity

• Client: HNW UK National and Resident
• Property: Off-market UK penthouse valued at approximately £10.5 million
• Loan: £6 million+
• Product: Regulated bridging loan

Enness was approached by a repeat client who needed fast access to regulated bridging finance to capitalise on an opportunity to acquire an off-market penthouse in the UK at a price below its market value. The property was intended to become the client’s new main residence.

The opportunity was particularly time-sensitive. The vendor’s personal circumstances had changed, meaning they needed to sell the property within a matter of weeks. This created an opportunity for the client to acquire the property at a significant discount, but only if finance could be arranged within the required timeframe.

The client already held an established property portfolio, which provided an important source of security. Enness was able to use the existing portfolio to structure funding that covered 100% of the purchase price of the new property, allowing the client to proceed without having to provide a cash deposit from their own funds.

Speed was critical throughout the transaction. The client needed a broker and lender capable of responding quickly, with all parties available to progress the application, valuation and legal work within the compressed timescale.

Enness provided indicative bridging finance terms within 24 hours of the initial enquiry. The proposed facility was credit-approved the following day, allowing valuations and legal work to begin immediately.

The rapid progress was supported by Enness’ experience of the specialist lending market and knowledge of which lenders could perform within the required timeframe. Identifying an appropriate lender was only one part of the process; ensuring that the right lending, valuation and legal teams were engaged from the outset was equally important given the transaction’s tight deadline.

By using the client’s existing property portfolio as security, Enness was able to structure the transaction around the client’s wider asset position rather than requiring them to fund the purchase solely from available cash. This allowed the client to move quickly on an off-market opportunity that may otherwise have been lost due to the vendor’s compressed sale timeframe.

The case demonstrates how high-net-worth bridging finance can provide flexibility when a borrower needs to act quickly on a high-value property opportunity. Where a client has substantial existing assets, these can potentially form part of a bespoke security structure, subject to lender criteria and the overall circumstances of the transaction.

For clients requiring fast finance to secure a high-value property opportunity, 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 and consider the total cost of borrowing before proceeding. Where existing properties are used as security, failure to meet the terms of the facility could result in enforcement action against those properties. Property values can also change, and acquiring a property below an estimated market value does not guarantee a future profit.

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.