- Client: UK national and Monaco resident
- Asset: Luxury yacht
- Loan Amount: Circa €5 million
- 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 preserve ownership and retain 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 can make lenders more cautious due to the potential 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 comfortable with the proposed structure.
Enness Global leveraged its network of private banks and specialist lenders to identify a lender experienced in luxury asset finance and capable of accommodating the client’s requirements. A bespoke facility of circa €5 million was structured over 24 months on an interest-only basis, providing the liquidity required 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 a balance between immediate access to capital and future 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 and future options remain available.
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 give advice on Luxury Asset Financing, and lender introductions are unregulated.
Where rates are quoted, the actual rate available will depend on individual circumstances and lender criteria and may vary at any time without notice.
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, valuation and lender criteria. Terms and outcomes will vary depending on individual circumstances and are not guaranteed.
Risk Warning:
Borrowing against a luxury asset carries risk. Failure to meet repayment obligations may result in enforcement action or the forced sale of the secured asset. The value of luxury assets can fall as well as rise, and they may be illiquid and take time to sell.
Information contained in our case studies is for market and illustrative purposes only. In some cases, these may be made up of multiple cases and are for illustrative purposes only.
Some case studies are made up of enquiries that have come into the business, not all business completes, and the posting of a case study does not represent a completed piece of business.
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.
