- Client: International high-net-worth individual
- Property: Grade I listed UK property
- Purchase Price: Circa £8 million
- Refurbishment Budget: £7 million+
- Loan: 65% LTV mortgage
- Rate: 4% + Bank Base Rate
Enness was approached by a high-net-worth client looking to acquire a Grade I listed property in the UK, which would become their primary residence. The client had accumulated substantial wealth overseas and was making their first significant entry into the UK property market.
The property had an acquisition value of approximately £8 million, but the scale of the project extended well beyond the initial purchase. The client had allocated more than £7 million towards extensive refurbishment works required to transform the Grade I listed property into their intended home. Given the substantial capital required for both the acquisition and refurbishment, structuring the financing efficiently was a key consideration.
The client wanted to maximise the amount of borrowing available against the property while retaining sufficient capital to fund the extensive works. Enness therefore needed to identify a lender that could take a broader view of the transaction and accommodate both the value of the property and the significant refurbishment programme.
Enness secured a 65% loan-to-value mortgage against the property at a rate of 4% above Bank Base Rate. The structure allowed the client to reduce the amount of capital required upfront for the acquisition while retaining greater liquidity for the planned refurbishment.
Enness also arranged financing to support the substantial refurbishment costs. By structuring the property finance around both the acquisition and the planned works, the client was able to allocate more of their available capital towards transforming the property rather than committing a disproportionate amount to the initial purchase.
Overall, the financing arrangement provided funding equivalent to approximately 70% of the combined acquisition and refurbishment costs. This enabled the client to use their capital strategically while progressing with an ambitious project involving a highly specialised and historically significant property.
Following completion of the refurbishment, the property was estimated to have a market value of between £18 million and £20 million. The transaction demonstrates how bespoke high-value mortgage structuring can help clients finance significant property acquisitions alongside major refurbishment projects, particularly where the borrower has substantial international wealth.
For clients purchasing unique or high-value properties and requiring finance that accounts for both the acquisition and wider project requirements, Enness can explore complex mortgage solutions tailored to their circumstances. Speak to a mortgage specialist to discuss your requirements.
Risk Warning:
Property finance carries risks. Borrowers should ensure they have a realistic strategy for meeting repayments throughout the mortgage term. Listed properties and extensive refurbishment projects can involve additional costs, delays and changes in property value. Failure to meet the terms of a secured facility could result in enforcement action against the property.
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 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.
