- Client: HNW UK National and Resident
- Property: Off-market UK penthouse valued at approximately £10.5 million
- Loan: £6 million+
- Product: Regulated bridging loan
Enness was approached by a repeat client who needed fast access to regulated bridging finance to capitalise on an opportunity to acquire an off-market penthouse in the UK at a price below its estimated market value. The property was intended to become the client’s new main residence.
The opportunity was particularly time-sensitive. The vendor’s personal circumstances had changed, meaning they needed to sell the property within a matter of weeks. This created an opportunity for the client to acquire the property at a reported discount to its estimated market value, but only if finance could be arranged within the required timeframe.
The client already held an established property portfolio, which provided a source of security for the proposed transaction. Enness was able to use the existing portfolio to structure funding that covered 100% of the purchase price of the new property, allowing the client to proceed without providing a cash deposit from their own funds.
Speed was critical throughout the transaction. The client needed a broker and lender capable of responding quickly, with all parties available to progress the application, valuation and legal work within the compressed timescale.
Enness provided indicative bridging finance terms within 24 hours of the initial enquiry. The proposed facility was credit-approved the following day, allowing valuations and legal work to begin immediately.
The rapid progress was supported by Enness’ experience of the specialist lending market and knowledge of lenders able to consider transactions within the required timeframe. Identifying an appropriate lender was one part of the process; ensuring that the relevant lending, valuation and legal teams were engaged from the outset was also important given the transaction’s tight deadline.
By using the client’s existing property portfolio as security, Enness was able to structure the transaction around the client’s wider asset position rather than requiring them to fund the purchase solely from available cash. This allowed the client to proceed with the off-market opportunity within the vendor’s required timeframe.
The case demonstrates how high-net-worth bridging finance can provide flexibility when a borrower needs to act quickly on a high-value property opportunity. Where a client has substantial existing assets, these can potentially form part of a bespoke security structure, subject to lender criteria and the overall circumstances of the transaction.
For clients requiring fast finance to secure a high-value property opportunity, speak to a mortgage specialist to discuss your circumstances.
Important: Regulated bridging finance is short-term borrowing and requires a credible and achievable repayment or exit strategy. Where repayment depends on the sale or refinancing of property, delays, changes in market conditions or changes in property values may affect the anticipated exit and the overall cost of borrowing. A property being acquired below an estimated market value does not guarantee a future profit or increase in value.
Read the UK version of this case study.
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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.
