- Client: HNW UK nationals
- Property Value: Circa £8.5 million
- Structure: Equitable second-charge bridging loan
- Purpose: Short-term liquidity
Enness was approached by high-net-worth clients who needed short-term finance to meet pressing financial obligations. The enquiry came through a lender that was unable to meet the required completion timeframe, leaving the clients needing to find an alternative solution quickly.
The proposed borrowing was to be secured against two high-value properties with a combined value of approximately £8.5 million. While the available security provided a strong basis for the borrowing, the tight deadline meant that the structure needed to be considered carefully from the outset.
A further complication was the existing first-charge position on the properties. Rather than pursuing a conventional second charge that required the consent of the existing first-charge holder, Enness explored an equitable second-charge structure. This allowed the transaction to progress without requiring consent from the first-charge lender, subject to the specific legal and lender requirements of the facility.
Speed was critical throughout the transaction. Enness worked closely with the lender and the relevant professional advisers to ensure the structure could be implemented within the required timeframe. Remote valuation methods were also used, helping to reduce delays that could otherwise have affected the completion process.
Enness ultimately secured the required bridging facility against the properties, allowing the clients to address their immediate financial commitments within the timeframe they needed.
The case demonstrates how the structure of bridging finance can be adapted where a transaction involves existing lending, high-value property and a particularly tight deadline. In more complex situations, the choice of security structure can be just as important as the amount being borrowed.
For borrowers who already have finance secured against their property, second-charge lending can provide an additional route to accessing capital without necessarily replacing the existing first-charge facility. The suitability of any structure will depend on the property, existing borrowing, lender requirements and the borrower’s circumstances.
If you require short-term funding against high-value property and are working to a tight deadline, speak to a mortgage specialist to discuss your requirements.
Disclaimer:
This case study is for illustrative purposes only and does not constitute financial, legal or tax advice. Finance is subject to status, underwriting, valuation, legal due diligence and lender criteria. Bridging finance is short-term borrowing and may carry higher costs than conventional mortgage finance. Second-charge borrowing is secured against property, and failure to meet repayment obligations could put the secured property at risk.
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.
