UK Capital Raise for a British National Retiring to Europe

• Client: UK nationals and UK residents
• Property Value: Circa £1.5 million
• Loan Amount: Circa £1 million
• Purpose: Overseas property purchase

Enness was approached by recently retired UK clients who were looking to relocate to a warmer climate. They had already exchanged contracts on their new property and paid a deposit, meaning they needed to secure the remaining funding within a tight timeframe.

The clients' recent retirement presented an important consideration when arranging the finance. With minimal current income and their pension not yet being drawn, a conventional affordability assessment was unlikely to reflect their wider financial position. Enness therefore needed to identify a lender that could take a broader view of their assets and circumstances.

The urgency of the transaction added another layer of complexity. Having already exchanged contracts, the clients had limited room for delays and needed a broker and lender that understood both their financial position and the intended use of the funds for an overseas purchase.

Enness identified a specialist lender able to consider the clients' circumstances and structured a bridging facility against their main UK residence. The facility was used to repay the existing first charge mortgage and release additional capital towards the onward property purchase.

A further consideration was how the interest would be serviced while the clients' existing property was being sold. As the clients had recently retired and had not yet begun drawing their pension, Enness arranged for the interest to be rolled up within the facility. With the UK property already being marketed for sale, this provided the lender with a clear route towards repayment.

The resulting structure enabled the clients to access the required capital without having to wait for their existing property to sell before completing their overseas purchase. The facility was arranged at a competitive rate and structured around the clients' available property equity and circumstances.

This case demonstrates how bridging finance can provide short-term liquidity when a property purchase needs to proceed before an existing asset has been sold. It can be particularly relevant where a borrower has substantial property assets but their current income position does not fit a conventional mortgage affordability assessment.

For clients purchasing property overseas, international mortgages may provide longer-term financing options, while short-term bridging can provide a solution where timing or an existing property sale creates a funding gap. The appropriate structure will depend on the client's circumstances, the properties involved and the lender's criteria.

Enness specialises in arranging bespoke finance for high-net-worth clients, including those navigating retirement, property sales and international purchases. Our approach considers the client's wider assets and objectives when identifying appropriate financing solutions.

If you are looking to purchase property overseas before selling an existing UK property, speak to a mortgage specialist to discuss your requirements.

Disclaimer:
This case study is for information and illustrative purposes only and does not constitute financial, tax, legal or investment advice. Bridging finance is short-term borrowing and is subject to lender criteria, valuation, affordability and an appropriate repayment strategy. Interest may be added to the loan balance where agreed, increasing the amount repayable. Property values can fall as well as rise, and borrowers should ensure they understand the risks associated with secured borrowing.