- Property Portfolio Value: £7.2 million
- Loan Amount: £4.3 million
- Interest Rate: 6.99%, five-year fixed
Enness was approached by a client seeking a bespoke financing solution for a diverse property portfolio valued at £7.2 million. The client wanted to raise £4.3 million against the portfolio, with the objective of unlocking capital while maintaining the flexibility to pursue their longer-term property investment plans.
The portfolio comprised a mixture of residential and commercial assets, with the potential for mixed-use properties also forming part of the wider portfolio. This diversity created additional considerations when structuring the finance, as each property could have different values, income profiles and risk characteristics.
Rather than assessing the properties individually in isolation, Enness took a holistic approach to the portfolio and considered how the assets could be structured together to meet the client’s borrowing requirements. The objective was to maximise the available capital while ensuring the proposed financing remained appropriate for the underlying portfolio.
The client wanted to use the capital raised to support their wider investment strategy, including expanding their property portfolio and developing existing assets. Accessing a proportion of the equity held across the properties provided the client with additional liquidity that could be deployed towards these opportunities.
Enness leveraged its network of more than 500 lenders to identify providers capable of considering the varied composition of the portfolio. By presenting the overall strength of the assets and considering the value and income potential of the individual properties, we were able to negotiate a financing structure tailored to the client’s requirements.
Enness secured £4.3 million of finance against the £7.2 million property portfolio at a competitive fixed rate of 6.99% over a five-year term. The structure provided the client with access to a significant amount of capital while allowing them to retain their underlying property holdings.
This case demonstrates the importance of taking a strategic approach when financing a diverse property portfolio. Where a portfolio contains different asset types, a bespoke financing structure can provide greater flexibility than approaching each property individually. By assessing the portfolio as a whole and understanding the client’s wider objectives, Enness can explore solutions designed around the specific characteristics of the assets and the borrower.
If you are looking to release equity from a property portfolio or raise finance against multiple assets, Enness can explore suitable property finance solutions based on your individual circumstances and investment objectives.
Risk Warning:
Property finance carries risks. Property values and rental income can fall, and borrowers may be unable to meet repayments if circumstances change. Failure to meet the terms of a facility could result in enforcement action against secured properties. Borrowers should ensure that any proposed borrowing is supported by a realistic repayment strategy.
Disclaimer:
This case study is for illustrative purposes only and does not constitute financial, legal or tax advice. Finance is subject to status, underwriting, property assessment and lender criteria. Terms and availability will vary depending on individual circumstances and the proposed transaction.
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.
