Asset Backed Lending Using Art and Classic Cars to Fund a London Property Purchase

Client Type: UK-based collector and parent of university students
Asset Type: Art collection and classic car collection
Funding Requirement: London flat purchase
Loan Type: Combined art-backed and classic car-backed facilities

The client, an established collector with both a substantial art collection and classic cars, sought liquidity to fund the purchase of a London flat for family use. Traditional mortgage financing through a trust structure was considered but was deemed overly complex and restrictive for the client’s objectives.

The client preferred a structure leveraging existing assets while preserving ownership and maintaining flexibility.

The transaction involved several complexities:

• Artworks were split between home display and professional storage, requiring logistical coordination for valuation and collateralisation
• Classic cars had previously been leveraged, requiring renewal and extension of existing facilities
• The client wanted to preserve flexibility and avoid securing borrowing directly against the property

Enness structured a combined asset-backed lending solution using both the art and classic car collections as collateral.

Art-backed lending:
The collection was valued at approximately £1.6 million, supporting a facility of circa £800,000 at approximately 50% loan-to-value, subject to lender criteria. Works held in private display were transferred to approved storage to meet collateral requirements.

Classic car-backed lending:
Existing lending arrangements secured against the client’s vehicle collection were restructured and extended to supplement the art-backed facility and provide the remaining capital required.

This combined structure enabled the client to release liquidity against existing assets while keeping the London property free from mortgage security.

The client secured the required funding for the property purchase while preserving ownership of both the art and vehicle collections. The structure supported the client’s broader liquidity requirements without requiring a traditional residential mortgage.

This case study demonstrates how asset-backed lending can provide alternative liquidity solutions for clients with substantial non-property assets and complex borrowing requirements.

Regulatory Notice:
Asset-backed lending secured against assets such as art collections or classic cars is typically unregulated and may fall outside UK FCA regulation. Where borrowing relates to residential property transactions, regulatory treatment may vary depending on the structure and security used.

Disclaimer:
This case study is for illustrative purposes only and does not constitute financial, legal, tax, or investment advice. Finance is subject to status, underwriting, asset suitability, and lender criteria.

Risk Warning:
Borrowing against assets carries risk. Failure to meet repayment obligations may result in repossession or forced sale of secured assets. Where borrowing relates to residential property transactions, your property may be repossessed if you do not keep up repayments on borrowing secured against it.