£750,000 Equity Release For A Client With A Complex Background

• Client: Finnish national and US resident, high-net-worth individual
• Property: Prime Central London investment property valued at £1m
• Requirement: Highest possible LTV, no early repayment charges and finance despite tax returns showing a loss
• Product: 2-year tracker at 1.74% + Bank of England base rate
• LTV: 75%

Enness was approached by a Finnish national and US resident who was looking to raise capital to purchase a new home in the United States, where they were permanently resident. Rather than selling assets or using available liquidity, the client wanted to leverage an unencumbered investment property in Prime Central London to raise the required capital.

The case presented several challenges. The client was a successful entrepreneur who reinvested a significant proportion of the revenue generated through their business back into the company to support its continued growth. As a result, their personal income was relatively low and their tax return showed a loss, despite the underlying business being in a considerably stronger financial position.

We reviewed the client's wider financial position and identified an unencumbered London flat, which was rented out and provided suitable security for the proposed facility. The cross-border nature of the transaction also needed to be carefully considered, as the UK property would be used as security for borrowing that would ultimately fund the purchase of a property in the USA.

Arranging finance for US nationals and residents can be challenging, as some lenders have additional reporting and regulatory requirements that limit their appetite for these borrowers. In this case, the lender also needed to understand why the client's tax return did not accurately reflect the strength of their underlying business and wider financial position.

Enness approached suitable lenders and presented the client's circumstances, global assets and proposed use of funds in detail. We successfully negotiated a 75% LTV mortgage secured against the London property, structured on a two-year tracker at 1.74% + Bank of England base rate.

We also negotiated the removal of early repayment charges, giving the client greater flexibility around their eventual refinancing or exit. The facility allowed them to unlock capital from their London investment property while retaining the flexibility required to pursue their US property purchase.

This case demonstrates how complex mortgage solutions can be structured around a borrower's wider financial position rather than relying solely on conventional income assessment. Cross-border borrowers with international assets, complex income structures or US connections may require a specialist approach to identify lenders with the appropriate appetite.

Enness works with international borrowers and has access to a broad network of specialist lenders capable of considering complex circumstances. To discuss your requirements, speak to a mortgage specialist.

Risk Warning:
Mortgages and secured lending carry risks. If you do not keep up with repayments, the lender may take enforcement action against the property used as security. Tracker mortgage payments can also increase if the Bank of England base rate rises.

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. Enness does not provide legal, tax or investment advice, and lender introductions are unregulated.