- Client: EU National and Resident
- Property: Prime London property valued at circa £3 million
- Loan: £500k bridging loan
Enness was approached by an EU national and tax resident who had inherited a substantial portfolio of wealth, with much of it held in illiquid assets. Among the assets was a prime property in London, which provided an opportunity to access liquidity without having to sell the underlying asset.
The client was preparing to undertake a new project and required £500k of capital to move forward. With the London property valued at approximately £3 million, the client wanted to use a proportion of the available equity to raise the required funds while retaining ownership of the property and their wider inherited assets.
The cross-border nature of the client's circumstances added complexity to the transaction. The client was resident outside the UK, while the security was a London property, requiring a lender comfortable with the international nature of the application and the client's wider financial position.
Enness identified a bridging finance solution secured against the London property. The £500k facility represented a relatively low level of borrowing against the property's approximately £3 million value, allowing the client to access the liquidity required without having to liquidate the property or other inherited assets.
The borrowing amount was structured around the client's immediate funding requirement, helping to limit the amount of debt required and the associated cost of borrowing. Enness also worked with the relevant professional parties to help progress the transaction efficiently given the cross-border elements involved.
The resulting facility provided the client with £500k of liquidity to launch their new project while allowing them to retain their London property and wider portfolio. This enabled the client to put capital to work without being forced to sell assets that formed part of their longer-term wealth strategy.
This case demonstrates how property-backed finance can provide liquidity for international clients whose wealth is concentrated in valuable but illiquid assets. Where a client has substantial property equity but does not want to dispose of the underlying asset, specialist international bridging finance can provide an alternative route to accessing capital, subject to lender criteria and the client's circumstances.
If you hold UK property and require short-term finance to unlock liquidity without immediately selling the underlying asset, speak to a mortgage specialist to discuss your requirements.
Risk Warning:
Bridging finance carries risks. Borrowers should have a clear and realistic exit strategy and consider the total cost of borrowing before proceeding. Failure to repay the facility in accordance with its terms could result in enforcement action against the secured property. Cross-border transactions may also involve additional legal, tax and regulatory considerations.
Disclaimer:
This case study is for illustrative purposes only and does not constitute financial, legal or tax advice. Enness does not provide tax advice. Independent professional advice should be obtained where appropriate. Finance is subject to status, underwriting, property assessment and lender criteria. Terms and availability will vary depending on individual circumstances and the proposed transaction.
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.
