Innovative Financing Solution for High-Value Property with Limited Income

• Client: High-net-worth individual
• Property: Unique property valued at £4.25m
• Loan: £2.5m
• Product: Three-year term at 5.44%

In this case, Enness was approached by a high-net-worth individual seeking £2.5 million of finance against a unique property valued at approximately £4.25 million. The client intended to use the capital to pursue a specific investment opportunity, but securing the required finance presented several challenges.

The client had substantial wealth held across a range of assets, including investments, other property holdings and valuable possessions. However, their reported income was comparatively limited, making it difficult to demonstrate affordability through the traditional income-based approach used by many mainstream lenders.

The nature of the property also restricted the number of lenders that could be considered. While the property represented significant security, its unusual characteristics meant that some lenders were unwilling to take it on as collateral. We therefore needed to identify a lender that could take a more flexible view of both the property and the client’s wider financial position.

Enness conducted a detailed review of the client’s background assets to demonstrate the strength of their overall financial position beyond the income shown in their financial records. We then approached lenders with experience in high-value and unconventional property finance, focusing on those that could assess the wider circumstances rather than relying solely on traditional affordability measures.

Once a suitable lender had been identified, we presented the client’s position in detail, including their asset base, the nature and value of the property and the intended use of the funds. The strength of the client’s overall financial position, combined with the quality of the security, helped provide the lender with the confidence required to proceed.

Enness successfully secured the required £2.5 million facility on a three-year term at an interest rate of 5.44%. The bespoke structure provided the client with the capital required to pursue their investment plans while demonstrating how a more holistic approach can help overcome challenges created by limited reported income and unusual property characteristics.

This case highlights the importance of presenting complex borrowers and unusual assets in the right way. For high-net-worth individuals, traditional income figures may not always reflect the full strength of their financial position. A specialist lender may be able to consider wider assets and circumstances when assessing a substantial financing request.

Enness specialises in arranging complex mortgages and bespoke property finance for high-net-worth clients with unusual circumstances. To discuss your requirements, speak to a mortgage specialist.

Risk Warning:
Mortgages and other forms of secured lending carry risks. If you do not meet the terms of the facility, the lender may take enforcement action against the property used as security. Property values can fall, and investment opportunities may not perform as anticipated. You should ensure that you understand the risks involved 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 provide investment advice and lender introductions are unregulated.