- Client: Offshore company with connections to Africa
- Property Value: Above £10 million
- Loan Amount: Circa £200,000
- Requirement: Short-term liquidity
Enness was approached by an overseas client whose offshore company owned a high-value property in a prime UK location. The property was in the process of being sold, but the client required short-term liquidity to meet business expenses while the sale progressed.
The relatively modest level of borrowing compared with the value of the property did not make the case straightforward. The main challenge was finding a lender comfortable with the property being held through an offshore structure, particularly given the company’s connections to Africa. There was also a tight timeframe, with the client requiring access to the funds within a couple of weeks.
Enness reviewed the structure and approached lenders with experience of offshore ownership and international connections. We identified a lender that was comfortable with the client’s circumstances and able to consider the proposed short-term facility.
As part of the negotiations, Enness was also able to agree a process that reduced the time and cost involved in progressing the application. This helped the client avoid unnecessary valuation expenditure while keeping the transaction moving towards completion within the required timeframe.
The resulting facility provided the client with the short-term liquidity required while their UK property sale progressed. The case demonstrates how the ownership structure of a property can be just as important as its value when arranging finance, particularly where an offshore company and international connections are involved.
For overseas clients, obtaining short-term finance against UK property can require a lender that is comfortable with both the asset and the underlying ownership structure. Enness works with specialist lenders across international markets and can assess complex circumstances to identify suitable funding options. If you or your clients require short-term finance against a UK property held through an overseas structure, speak to a mortgage specialist to discuss your requirements.
Disclaimer:
This case study is for illustrative purposes only and does not constitute financial, legal or tax advice. Finance is subject to status, underwriting, property assessment and lender criteria. Terms and availability will vary depending on individual circumstances, the ownership structure and the proposed transaction.
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.
