Fast bridge for West African UBO borrowing in an East Asian SPV
9th February 2024
- Client: Dual National
- Residency: West Africa
- Property Value: Circa £8M
- Loan Amount: Above £5M
- LTV: 70%
An existing Enness client is looking to expand their BTL portfolio in London. They are looking to purchase a property in London for circa £4M and have plans to modernise the property to increase its value. The client wants to raise the deposit by releasing equity from their existing portfolio, valued at around £4M.
There were a few factors with this deal that made it complex. Firstly, the client's links to West Africa eliminate a lot of lenders due to its high risk rating. Secondly, the client requires bridging finance as the property, and their existing portfolio is undergoing works and not habitable/ lettable.
The client is looking for max borrowing to assist with the purchase, so anything less than 60% LTV would not work.
Moving quickly, Enness successfully negotiated a 70% loan-to-value bridge loan with a privately funded lender. As the borrowing entity is an East Asian SPV, the lender requires a legal opinion from a local lawyer. Still, assuming this is complete, the loan should be completed within the required 4-6 week deadline. The lender has no issue with the property/properties undergoing work now or in the future as long as a stable exit strategy can be evidenced.
Enness has access to over 500 Lenders, some of which are privately funded bridging lenders with access to HNWI's funds rather than a credit line from another bank. This makes them very flexible with their offering and can do things that other, more mainstream bridging lenders cannot.
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