- Client: UK Nationals and Residents
- Portfolio Value: Approximately £12M
- Loan Amount: Approximately £7M
Enness was approached by UK-based clients seeking to restructure and transfer ownership of a property portfolio comprising both residential and commercial assets. The transaction required a bespoke financing solution that could accommodate the proposed ownership structure while refinancing existing borrowing and raising additional capital to meet tax liabilities due at completion.
The case presented several challenges. A key consideration was identifying a lender comfortable with the ownership transfer structure proposed by the clients’ accountants and wider advisory team. Affordability also required careful consideration. Although the overall portfolio was conservatively geared, several properties generated comparatively lower rental yields, which placed additional pressure on the borrowing capacity available.
There were also historic business events within the incoming owners’ wider financial background that required careful explanation during the underwriting process. The lender needed to understand these circumstances in the context of the clients’ overall financial position rather than assessing them in isolation.
Enness worked closely with the clients and their professional advisers to present the transaction and wider financial circumstances clearly. We identified a lender with the appetite and flexibility to accommodate the proposed ownership structure and assess the mixed residential and commercial portfolio as a whole.
The resulting facility provided approximately £7M of financing against the circa £12M portfolio. The structure enabled the clients to refinance existing borrowing while raising additional capital to meet tax liabilities arising at completion. It also supported their wider long-term succession and wealth planning objectives.
Throughout the transaction, Enness coordinated closely with the clients’ accountants, tax advisers and solicitors to ensure the financing structure aligned with the broader ownership and tax considerations. This collaborative approach was particularly important given the number of professional parties involved and the complexity of the proposed transfer.
This case demonstrates how specialist mortgage and structured finance can support complex portfolio transactions involving mixed-use assets, ownership restructuring and significant tax considerations. By taking a holistic view of the clients’ financial circumstances and working closely with their professional advisers, Enness was able to structure a solution aligned with their immediate financing requirements and longer-term objectives.
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, asset suitability and lender criteria.
Risk Warnings:
Your property may be repossessed if you do not keep up repayments on your mortgage or other borrowing secured against it.
Buy-to-let and investment property finance carries risk. Property values and rental income can go down as well as up, which may affect affordability and the ability to meet repayment obligations.
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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.
