Equity Release for a High Net Worth Individual on Unique Property

• Client: UK National and Resident
• Property Value: Circa £8.5 million
• Loan Amount: £400k
• LTV: 5%
• Term: 5-year regulated bridging loan

Enness was introduced to a UK-based client who owned a property in North West London outright and was looking to raise additional liquidity to support their living costs ahead of a planned downsizing. The property was valued at approximately £8.5 million, meaning the client had significant wealth tied up in a single asset.

The client had multiple income sources across different currencies, but their income was not sufficient to support the level of borrowing required through a conventional mortgage. Rather than selling the property immediately, the client wanted to retain it on the market and wait for more favourable conditions before agreeing a sale.

The nature of the property created an additional lending challenge. It was a former artist’s studio, with a significant proportion of its value attributed to its unique characteristics. The property had already been placed on the market and the client had received several offers, but was prepared to wait for the market to improve before accepting a price closer to their expectations.

The client therefore required a flexible short-term financing solution. They wanted to avoid making monthly interest payments, instead rolling the interest into the facility, and also required no early repayment charges because the property could be sold at any point during the term, subject to the agreed facility terms.

Given the client’s substantial asset position but limited conventional income, Enness identified a specialist bridging finance solution that could be considered in light of the client’s wider financial circumstances and the substantial equity available in the property.

Enness secured a £400k facility against the property, representing just 5% LTV, on a five-year regulated bridging term. The extended term was particularly relevant to the client’s circumstances, providing additional time to find a suitable buyer while preserving flexibility around the eventual sale.

The low LTV meant that the facility represented a relatively small proportion of the property’s value, which was a relevant factor in the lender’s assessment alongside the client’s wider financial circumstances and the characteristics of the property.

By using the equity in the property rather than requiring the client to sell immediately, the facility provided access to the liquidity needed for living costs while allowing the client to retain control over the timing of the eventual sale. The absence of early repayment charges also meant the client could repay the facility when the property was sold without an additional early repayment charge, subject to the agreed terms.

This case demonstrates how specialist lending can provide liquidity for high-net-worth individuals whose wealth is concentrated in valuable but illiquid property assets. Where conventional affordability criteria do not fully reflect a borrower’s wider financial circumstances, a bespoke high-net-worth bridging finance structure may provide an alternative route to accessing capital, subject to the lender’s assessment and applicable requirements.

If you hold significant wealth in property but have limited conventional income and require flexible short-term finance, speak to a mortgage specialist to discuss your circumstances.

Important: Regulated bridging finance is short-term borrowing and requires a credible and achievable repayment or exit strategy. Where repayment depends on the sale of a property, delays, changes in market conditions or changes in property values may affect the anticipated exit and the overall cost of borrowing. Where interest is rolled into the facility, the total amount repayable can increase over the term.