$3 Million US Listed Stock Loan to Diversify Assets

GROUP CEO

Islay Robinson

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Key Details: 

• Introducer: A US-based tax adviser
• Client: An American national and resident with significant US-listed securities
• Scenario: The client wanted to generate liquidity against a single line of stock to buy an investment property in New York
• Loan Amount: $3 million, 35% LTV against a single line of US-listed stock
• Rate: 4.85%

A New-York based tax specialist reached out to Enness on behalf of their client, an American national and resident. The client wanted to buy a property in the city to diversify their assets and generate monthly income – this was partially to support retirement plans. They wanted to raise capital to buy the property using a single line of US-listed stock. The adviser and client both preferred a low LTV loan to reduce risk and keep the cost of the loan as low as possible.

The borrower had a significant holding of US-listed stocks and a good income. However, finding a lender that could accommodate a loan against a single line of stock had been difficult for the adviser – even with a low LTV. There was some pressure to complete the deal as the client had found a property they wanted to buy. The tax adviser wanted to find a solution that didn't require liquidation of assets or securities, which would have triggered a significant taxable event for their client.

Enness was suggested as a broker by a UK-based business associate of the tax adviser. We helped the client access finance at competitive rates. Most importantly, we could do this against a single line of stock. We brokered the finance package at pace. This meant the client didn't have to liquidate assets to purchase the property – a great result for all involved.