- Client: UK national and Monaco resident
- Asset: Luxury yacht
- Loan Amount: Circa €5M
- Loan Term: 24 months, interest-only
- Purpose: Liquidity for a high-value residential property renovation
Enness Global was approached by a UK national and Monaco resident seeking to release liquidity from a luxury yacht to fund a high-value residential property renovation. The project was time-sensitive, and the client wanted to access capital without selling the yacht outright, allowing them to retain ownership and flexibility around the asset.
The transaction presented several challenges due to the specialist nature of yacht-backed lending. The yacht was also being marketed for sale, which could affect the lender's assessment of the proposed facility due to uncertainty around the timing and outcome of a future sale. The client also wanted to continue using and chartering the yacht throughout the facility, requiring a lender able to consider the proposed structure.
Enness Global used its network of private banks and specialist lenders to identify a lender experienced in luxury asset finance and able to consider the client's requirements. A bespoke facility of circa €5M was structured over 24 months on an interest-only basis, providing liquidity for the renovation project while allowing the client to retain ownership of the yacht.
The facility also provided flexibility around repayment, with no exit fee for early repayment. This meant the client could potentially sell the yacht during the loan term and repay the borrowing without an additional early-exit charge, subject to the agreed facility terms. The structure therefore provided access to capital while retaining flexibility around the yacht.
With the financing in place, the client was able to proceed with the property renovation without waiting for a yacht sale. At the same time, the client retained use and ownership of the yacht, including the ability to continue chartering the asset subject to the lender’s requirements.
The case demonstrates how yacht equity release can provide an alternative source of liquidity for high-net-worth individuals holding substantial luxury assets. Rather than requiring an immediate sale, specialist lending can, subject to lender criteria and asset suitability, allow value to be unlocked while ownership is retained.
Enness Global works with specialist lenders across luxury asset finance, helping clients explore bespoke funding structures against high-value assets. For yacht owners seeking liquidity without an immediate sale, the appropriate structure will depend on the asset, ownership arrangements, intended use, valuation and lender requirements.
ENNESS DOES NOT PROVIDE ADVICE OR RECOMMENDATIONS ON LUXURY ASSET FINANCING, VALUATIONS, INVESTMENTS OR OTHER PROFESSIONAL MATTERS. LENDER INTRODUCTIONS ARE UNREGULATED. FINANCE IS SUBJECT TO ASSET SUITABILITY, VALUATION, LENDER CRITERIA AND INDIVIDUAL CIRCUMSTANCES.
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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.
