Enness Global was recently approached by a client seeking assistance in raising equity against their home. They required the funds to settle an unforeseen tax bill of £3,100,000, however, the client was unable to make the payment due to insufficient liquid funds. As a result, they were required to make an immediate payment without enough time to sell other assets to cover the costs. Our solution was to organise the client a second charge to raise funds in a matter of weeks.
This case was challenging for a number of reasons, including the client's reluctance to pay back his previous first charge due to its historically low interest rate. Additionally, we were adding a second charge to their principal house, which turned this transaction into a regulated one and constrained the possibilities. They also intended to settle their own personal tax due with the released funds and lastly, the property needed a lot of work, and it wouldn't be finished before the loan was pulled.
After researching the market, we discovered a viable solution for our client. They could obtain the necessary funds at a rate of 1.1% per month for 12 months, allowing them ample time to arrange the sale of additional assets to repay the loan.
If you are requiring assistance in raising equity on your property, please feel free to get in touch with our experienced brokers to discuss your particular circumstances.