- Client: UK national and UK resident
- Net Worth: Approximately £5M
- Investment Portfolio: Approximately £2M in marketable securities
- Funding Requirement: Approximately £500K for a UK residential property purchase
- Solution: Non-recourse Lombard-style facility secured against a diversified investment portfolio
The client was a UK national and UK resident with an established personal balance sheet and a diversified investment portfolio. Total net worth was approximately £5M, with around £2M held in marketable securities. The client wished to utilise existing investments rather than liquidating assets to fund a property purchase.
The client required approximately £500K to support the purchase of a UK residential property. The objective was to access liquidity without selling investments or disrupting the client's longer-term portfolio strategy. A non-recourse structure with flexibility around the term and repayment profile was preferred, subject to lender criteria.
Although the proposed borrowing was relatively straightforward from a structural perspective, the loan size was below the minimum thresholds typically accepted by some private banks offering Lombard-style facilities. The transaction therefore required a specialist lender able to consider the proposed facility size and the client's wider financial profile.
Enness used its private banking network to identify a lender willing to consider a non-recourse Lombard-style facility secured against a diversified investment portfolio. Enness presented the client's overall financial position to the lender, enabling the application to be assessed in the context of the wider balance sheet rather than solely against minimum facility thresholds.
The proposed structure provided the client with access to liquidity without requiring the underlying investments to be sold. The facility also allowed the client to retain their existing portfolio positioning, subject to the lender's security requirements, ongoing collateral coverage and the agreed terms of the facility.
Subject to individual circumstances, lender approval, asset suitability and prevailing market conditions, securities-backed facilities can provide an alternative source of liquidity for investors seeking to access capital without immediately liquidating investment holdings. In this case, the structure supported the client's proposed property purchase while preserving their broader investment position.
This case illustrates how specialist securities-backed lending can provide alternative financing solutions for clients with substantial investment portfolios, particularly where the required facility falls outside the typical thresholds of some private banks. Each transaction is assessed individually, with available leverage and terms dependent on the underlying assets, market conditions, lender criteria and the borrower's circumstances.
ENNESS DOES NOT PROVIDE ADVICE ON SECURITIES-BACKED LENDING OR INVESTMENTS. LENDER INTRODUCTIONS ARE UNREGULATED. TERMS AND AVAILABILITY ARE SUBJECT TO INDIVIDUAL CIRCUMSTANCES, UNDERLYING SECURITIES AND LENDER CRITERIA.
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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.
