UK Manor House Equity Release For HNW Client

• Client: UK LLP
• Property Type: Luxury manor house in Surrey
• Property Value: £16,000,000
• Loan Amount: £7,350,000
• Interest Rate: 0.68% pcm, 24-month term

Enness was approached by a leading London law firm on behalf of its clients, who required a substantial amount of liquidity to settle an outstanding financial obligation. The clients had originally intended to sell a luxury manor house in Surrey to raise the required capital. However, the property’s unique characteristics, prevailing market conditions and the timeframe involved meant that achieving a suitable sale price within the required period was not realistic.

With the sale no longer a viable short-term solution, the clients needed an alternative source of finance that could provide the required liquidity while allowing them additional time to determine the most appropriate longer-term strategy for the property.

The transaction presented several additional complexities from a lending perspective. The clients had generated their wealth through activities in Africa’s oil and gas sector, meaning the lender needed to consider both the nature of the underlying wealth and the jurisdictions involved. This significantly narrowed the pool of lenders with the appetite and ability to consider the transaction.

Given the size of the facility, the value and nature of the property and the requirement for a rapid completion, lender selection was particularly important. Enness approached a lender with which it had successfully completed similar transactions and had confidence in its ability to execute within the required timeframe.

An experienced professional team was assembled to progress the transaction, with enhanced due diligence completed independently. The property valuation was arranged within 24 hours of the initial approach, while the legal documentation was issued during the same week. The transaction involved multiple sets of legal advisers alongside the lender, the clients and Enness, requiring close coordination throughout.

Enness successfully arranged a £7.35 million facility secured against the £16 million property, with a 24-month term and an interest rate of 0.68% per month. The facility provided the clients with the liquidity required to settle their outstanding obligation without forcing a sale of the property within an unsuitable timeframe.

From the initial approach through to completion, the transaction was completed within four weeks. The case demonstrates how specialist equity release and unusual property finance can provide liquidity against high-value assets where conventional lending routes may not be suitable.

For high-net-worth borrowers with complex wealth structures, international interests or unusual properties, identifying the right lender at the outset can be critical to achieving a successful outcome within a tight timeframe. Enness can assess complex scenarios and approach specialist lenders with the appetite to consider individual circumstances.

If you are looking to raise capital against a high-value property and require a bespoke financing solution, Enness can assess your circumstances and explore suitable options.

Risk Warning:
Property-backed borrowing carries risks. If you do not meet the terms of the facility, the lender may take enforcement action against the secured property. Property values can also fall, and borrowers should consider the affordability and proposed repayment strategy carefully.

Disclaimer:
This case study is for illustrative purposes only and does not constitute financial, legal or tax advice. Finance is subject to status, underwriting, due diligence, property assessment and lender criteria. Terms and availability will vary depending on individual circumstances.