Equity Release from Investment Property Portfolio
6th June 2022
Key Details:
- Introducer: Financial adviser, UK
- Client: American UHNWI, UK resident
- Scenario: The borrower wanted to consolidate debt and create liquidity to invest in high-growth opportunities by releasing equity from investment properties. This was challenging as many lenders couldn’t work with an American.
- Requirements: Borrowing the maximum possible, with the best rates and terms available on the market
An introducer – a financial manager in the UK – approached Enness on behalf of a HNW American client who lives full-time in London. The individual owned four high-value London properties as investments and wanted to release equity from the homes to consolidate the borrower’s various debts at a more competitive rate. The borrower also wanted to use additional investments in high ROI projects.
The introducer had found it hard to find a lender that could work with an American HNWI and would lend as much as was required – the lenders that could deliver finance were only offering loans of 50% LTV. The introducer was urgently looking for a solution as the borrower identified investment opportunities and needed liquidity quickly. Through no fault of the introducer, the borrower was disappointed with the initial LTVs offered by the institutions they had approached and the proposed rates and terms.
Enness worked with the financial adviser to approach a private bank to secure a 75% LTV across the three properties (£37.5million). The borrower was happy to place assets under management to maximise how much they could borrow.
The borrower had initially thought an LTV of 75% would be impossible. Their adviser had delivered a fantastic solution that was better than anticipated, and the client was delighted.
