Key Details:
- Client: Ultra-high-net-worth UK national with international business interests
- Property Type: Mixed-use residential and commercial portfolio
- Property Value: Circa £15 million
- Loan Amount: Circa £9 million
- Loan-to-Value: Approximately 60%
- Loan Term: 5 years
The client, an ultra-high-net-worth UK national with substantial business interests across Europe and the Middle East, required refinancing for a mixed-use property portfolio. Their previous facility with a private bank was approaching expiry and renewal was not available. In addition to refinancing the existing borrowing, the client sought to access additional capital to support ongoing capital expenditure requirements across their international businesses.
The main challenge was structuring a single facility covering both residential and commercial properties. Commercial assets can attract different lending criteria and pricing from residential property, which could have made the overall refinancing less efficient. The client required a streamlined structure that could accommodate the mixed-use portfolio while providing flexibility for their wider financial requirements.
Enness negotiated a facility where the lender relied predominantly on the residential properties as security, with only a limited portion of the commercial assets included within the security package. This approach enabled the lender to assess the portfolio holistically while taking account of the different characteristics of the underlying assets.
A circa £9 million, five-year facility was structured at approximately 60% loan-to-value on a variable-rate basis, with interest-only repayments, subject to lender terms. The structure included limited product fees and no early repayment charges, providing flexibility should the client wish to repay or refinance the facility before the end of the agreed term. A renewal option was also incorporated, subject to lender approval and the terms applicable at the time.
The refinancing provided the client with a consolidated funding structure across their property portfolio while releasing additional capital for wider business requirements. By carefully considering the balance between residential and commercial security, Enness was able to structure a solution aligned with the client’s broader objectives and the lender’s appetite.
This case demonstrates how specialist refinancing can provide solutions for high-net-worth clients with complex mixed-use property portfolios. Where residential and commercial assets are held together, careful structuring can help balance security requirements, flexibility and the overall efficiency of the financing arrangement, subject to lender criteria.
Disclaimer
This case study is for illustrative purposes only and does not constitute financial, legal, tax or investment advice. The client scenario has been anonymised and certain details have been generalised to protect confidentiality. Finance is subject to status, underwriting, property suitability, valuation, jurisdiction and lender criteria. Loan amounts, loan-to-value ratios, pricing, lending structures and outcomes are indicative only and may vary depending on individual circumstances. Enness Global acts as a credit broker and not as a lender.
Risk Warning
Property values can fall as well as rise, and commercial and mixed-use property may be illiquid and take time to sell. Where borrowing is secured against property, failure to meet repayment obligations may result in the lender taking possession of the secured assets.
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.
