- Client: High-net-worth couple
- Combined Property Value: Circa £10 million
- Loan Amount: Approximately £5 million
- Purpose: Liquidity against UK residential property
Our clients, a high-net-worth couple with significant investment holdings, approached Enness seeking a flexible lending solution. The clients had substantial annual income, including dividend income and additional earnings totalling approximately £2 million per year. Their overall net worth was around £40 million, with a significant proportion of their wealth held offshore.
The clients owned two prime residential properties in the UK, with a combined value of approximately £10 million. They wanted to leverage these assets to raise around £5 million in liquidity while continuing with their existing investment strategy and retaining flexibility across their wider wealth portfolio.
A key consideration was finding a lender that could take a holistic view of the clients' financial position. Their significant offshore holdings, substantial investment portfolio and multiple income sources meant that a conventional lending approach would not necessarily reflect their overall financial strength or liquidity.
Enness worked with a private bank to structure a bespoke facility secured against the clients' UK residential properties. The resulting facility was arranged as a tracker mortgage with a competitive margin over the base rate and a low percentage arrangement fee.
The structure enabled the clients to unlock approximately £5 million of capital without requiring them to sell or materially restructure their existing investment holdings. This provided greater liquidity while allowing them to continue pursuing their longer-term investment strategy.
The facility also provided flexibility around the clients' wider wealth position, allowing their offshore holdings and investment portfolio to remain an important part of their overall financial strategy. By taking into account the clients' assets, income and broader financial circumstances, the private bank was able to provide a financing structure aligned with their requirements.
This case demonstrates how private bank mortgages can provide flexible financing for high-net-worth clients with significant assets, complex income structures and substantial investment portfolios. Rather than assessing the borrowing solely against traditional income, private banks may be able to take a broader view of a client's overall financial position, subject to their individual criteria.
For clients looking to unlock capital from UK property while retaining their wider investment holdings, equity release can provide an alternative route to accessing liquidity. Where clients have multiple properties and substantial assets, property portfolio finance may also be relevant depending on the structure and lender requirements.
Enness works with private banks and specialist lenders to arrange bespoke financing for high-net-worth and ultra-high-net-worth clients. Our approach considers the client's wider financial position, assets and objectives when identifying suitable lending structures.
If you are looking to unlock liquidity from UK property while retaining your wider investment portfolio, speak to a mortgage specialist to discuss your requirements.
Disclaimer:
This case study is for information and illustrative purposes only and does not constitute financial, tax, legal or investment advice. Finance is subject to lender criteria, valuation, affordability and individual circumstances. Property values can fall as well as rise, and borrowers should ensure they understand the risks associated with secured borrowing before proceeding.
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.
