- Client: Ultra-High-Net-Worth Individuals
- Property Value: Approximately £11.5M
- Loan Amount: Circa £3.5M
- Facility Type: Roll-Up Lifetime Mortgage
Enness was approached by two ultra-high-net-worth individuals who had developed a bespoke eco-conscious residence valued at approximately £11.5M. The property represented a significant personal and financial asset, but its non-standard construction made it unsuitable for many conventional lending solutions.
The clients were looking to reduce their financial commitments and release equity from the property to provide greater flexibility for their future plans. An existing high-interest mortgage remained secured against the property, creating a requirement for a refinancing solution that could provide additional liquidity while addressing the existing borrowing.
The property's unusual construction and high value presented the primary challenge. Many mainstream lenders are less comfortable with non-standard residential properties, particularly where the construction, specification or valuation falls outside their usual lending criteria. The clients therefore required a specialist lender with an appetite for both the property and their broader circumstances.
Enness identified a lender experienced in providing equity release solutions against high-value, non-standard properties. Following discussions around the property and the clients' requirements, we successfully arranged a circa £3.5M roll-up lifetime mortgage.
The structure allowed the clients to release equity from the property without making regular monthly repayments during the term, in accordance with the terms of the facility. Instead, interest was rolled up over time, with the outstanding balance becoming payable in line with the lifetime mortgage agreement.
The solution provided the clients with access to a significant amount of capital while giving them greater flexibility around their ongoing financial commitments. It also enabled them to replace their existing borrowing with a structure more closely aligned with their objectives and circumstances.
This case demonstrates the importance of specialist lending expertise when conventional mortgage options are unavailable. Enness works with high-net-worth and ultra-high-net-worth clients whose property assets or financial circumstances may fall outside standard lending criteria, using its network of specialist lenders to identify bespoke solutions.
If you are looking to release equity from a high-value or non-standard property and require a specialist financing solution, speak to a mortgage specialist to explore your options.
Disclaimer:
Enness does not provide legal or tax advice. You should seek appropriate professional advice regarding your personal circumstances and requirements. Financing options available will depend on your circumstances, requirements and lender criteria at the time of application.
Important:
A lifetime mortgage is a long-term financial commitment. Interest may be added to the outstanding balance over time, increasing the amount owed. This can reduce the equity available in the property and may affect your estate. The specific terms, repayment requirements and eligibility criteria will depend on the lender and product selected.
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.
