Enness Secures £10 Million Loan for Dual National’s £18 Million London Property Investment

• Client: Dual national
• Property: Six-bedroom, six-bathroom house neighbouring Harrods, valued at £18m
• Loan: £10.175m equity release facility
• LTV: 56%
• Facility: 24-month term with £5m AUM and a flexible Lombard facility

In this case, Enness was approached by a high-net-worth client who wanted to release equity from their private residence in prime central London. The property, a six-bedroom, six-bathroom house neighbouring Harrods, was valued at approximately £18 million and owned in the client’s personal name.

Despite the substantial value of the property, the client had struggled to find a suitable lender willing to provide the level of equity release required. The primary challenge was serviceability, as the client had comparatively limited income relative to the size of the proposed facility. While the property provided significant security, traditional affordability assessments made it difficult to secure an appropriate mortgage.

The client’s objective was to unlock some of the equity tied up in the property and invest the capital into the stock market. This would provide greater liquidity and allow the client to pursue investment opportunities without selling the property. The alternative available to the client at the time was an expensive bridging loan, which was not considered the most appropriate long-term solution.

Enness reviewed the client’s wider financial circumstances and considered how their experience and investment background could be presented to lenders. The client had an extensive background in senior banking positions and significant experience as an investor. Rather than assessing the application solely through traditional income-based affordability criteria, Enness approached a private bank that could take a more holistic view of the client’s overall wealth, assets and experience.

The private bank was comfortable with the client’s financial background and agreed to provide a £10.175 million facility against the property. The structure provided the client with the liquidity they required while retaining ownership of their prime central London residence.

As part of the wider banking relationship, the client also had access to a £5 million assets-under-management arrangement alongside a flexible Lombard facility. This gave the client an additional source of liquidity that could be drawn upon when required, providing greater flexibility around future investment opportunities.

The resulting structure allowed the client to unlock significant capital from an otherwise illiquid asset while establishing a broader private banking relationship. The investment portfolio was built using the capital raised, with the client retaining direct trading access to the portfolio.

This case demonstrates how equity release against high-value residential property can become more complex when traditional income does not adequately reflect a borrower’s wider financial position. For high-net-worth individuals with substantial assets but comparatively limited income, a private bank may be able to take a more holistic approach to assessing the overall circumstances.

Enness works with private banks and specialist lenders to structure bespoke equity release facilities for high-net-worth clients. To discuss your requirements, speak to a mortgage specialist.

Risk Warning:
Equity release and securities-backed lending carry risks. Borrowing against property or investments can result in the loss of assets if you do not meet the terms of the facility. Investment values can fluctuate, and a fall in the value of investments or property may affect the level of available borrowing or result in additional requirements from the lender. You should ensure that you understand the risks and have a clear repayment strategy before proceeding.

Disclaimer:
This case study is for illustrative purposes only and does not constitute financial, legal, tax or investment advice. Finance is subject to status, underwriting, property assessment and lender criteria. Terms and availability will vary depending on individual circumstances. Enness does not give advice on investments or Securities-Backed Lending, and lender introductions are unregulated.