- Loan Amount: Circa €5M high-leverage mortgage for a main residence
- Client: European entrepreneur with no recurring employment income
- Structure: Property security combined with a pledge against part of the client's investment portfolio
Following the successful sale of a business several years earlier, a European entrepreneur wanted to purchase a new primary residence in France while preserving a significant proportion of their liquid wealth. Although the client had substantial assets, they were no longer receiving regular employment income, making the financing requirements less straightforward than a conventional residential mortgage application.
The objective was not simply to obtain finance, but to structure the purchase in a way that supported the client's broader wealth and capital allocation strategy. As the property was being acquired as a main residence in France, the transaction also needed to satisfy applicable local lending and affordability requirements, which can place emphasis on recurring income alongside overall financial circumstances.
Despite the client's strong financial position, many lenders were unable to accommodate the combination of high leverage and the absence of ongoing employment income. Securing an appropriate solution required a lender experienced in cross-border private banking and capable of considering liquidity, investment assets and the client's wider financial profile alongside traditional underwriting criteria, subject to lender assessment and approval.
Working with specialist international private banking partners, Enness arranged a financing structure combining security over the property with a pledge against part of the client's investment portfolio. Subject to lender approval and applicable regulatory requirements, this supported borrowing of approximately €5M while allowing the client to retain liquidity for wider investment and wealth planning purposes.
The transaction completed in approximately 12 weeks, enabling the client to acquire the property while retaining flexibility across their wider investment portfolio. The case highlights how specialist private banking solutions can support borrowers whose financial circumstances differ from conventional income-based lending models.
FINANCE INVOLVING SECURITIES-BACKED STRUCTURES OR PORTFOLIO PLEDGES MAY INVOLVE ADDITIONAL COLLATERAL REQUIREMENTS OR THE SALE OF SECURED INVESTMENTS IF REPAYMENT OBLIGATIONS ARE NOT MET. REGULATORY PROTECTIONS MAY VARY DEPENDING ON THE STRUCTURE AND JURISDICTION.
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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.
