Key Details
- Client: UK-based investor
- Property: UK residence valued at circa £7 million
- Loan: Circa £2 million interest-only facility
- Loan to Value: Sub-20%
A UK-based investor with a substantial private market portfolio required liquidity to manage ongoing capital commitments. The challenge was not overall wealth, but timing. Capital was largely deployed across private equity and early-stage investments, where long-term value remained strong but liquidity was constrained due to extended exit timelines and continued capital calls.
The client owned a prime UK residence outright, valued at approximately £7 million. A short-term, interest-only facility of circa £2 million had previously been arranged to relieve immediate pressure. However, this facility was discretionary and temporary, creating uncertainty around longer-term funding and stability.
This was not a conventional lending case. The client’s income was derived from capital gains, fund distributions, and structured withdrawals rather than a fixed salary. While substantial in aggregate, it did not align with traditional affordability models used by high-street lenders. Forcing liquidity through early asset sales would have been inefficient, while borrowing directly against private investments would have introduced unnecessary complexity and potential margin exposure.
The requirement was clear: secure stable liquidity without disrupting long-term investment structures.
Enness introduced a private bank experienced in working with sophisticated investors and complex financial profiles. The facility was structured as asset-based lending, secured solely against the UK residential property, with underwriting informed by the client’s broader balance sheet rather than income alone.
A five-year, interest-only facility of circa £2 million was arranged at sub-20% loan-to-value, with no early repayment penalties and full flexibility. This allowed the existing short-term facility to be repaid while providing certainty of funding over a longer horizon.
The solution preserved the client’s investment strategy, avoided forced asset sales, and maintained structural integrity across the wider portfolio. This case highlights how tailored private banking solutions can provide liquidity based on asset strength and long-term wealth, rather than relying solely on traditional income metrics.
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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.
