A property developer specialising in luxury residential projects approached Enness Global seeking to refinance existing borrowing secured against two prime Central London investment properties. The properties had a combined value of approximately £15 million, with existing borrowing of around £7 million. As part of the refinance, the client also wanted to raise a further £2 million to support their wider development strategy.
The client’s circumstances reflected the characteristics of a development-focused business. A significant proportion of their capital was committed to property projects, resulting in relatively limited liquid assets alongside a high level of existing borrowing. Income was also variable, as the client’s returns were closely linked to the timing and completion of property developments and subsequent sales.
This created challenges when approaching traditional lenders. The combination of substantial existing borrowing, variable income and wealth concentrated in property meant that a conventional affordability assessment did not fully reflect the client’s overall financial position. The refinance therefore required a lender willing to take a broader view of the underlying assets and the client’s wider balance sheet.
Enness Global approached a private bank experienced in assessing high-net-worth property investors and developers. The lender was able to consider the strength of the underlying Central London properties alongside the client’s wider financial position and development experience.
A bespoke refinance facility was structured to provide approximately £9 million of total funding against the property portfolio, subject to lender criteria. The facility combined a mortgage with an additional overdraft facility, providing the client with greater flexibility around the timing and use of the additional capital.
The structure enabled the client to refinance the existing borrowing while releasing further funds for future property-related requirements. By combining long-term secured borrowing with flexible additional funding, the solution was aligned with the client’s variable cash flow and development strategy.
This case demonstrates the importance of specialist lender selection when refinancing property portfolios where borrowing is concentrated in development assets and income can fluctuate significantly. By presenting the client’s property holdings, experience and wider financial position to a suitable private bank, Enness was able to identify a structure that provided both refinancing certainty and additional liquidity.
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, property suitability and lender criteria. Terms, rates and availability may vary depending on individual circumstances.
Risk Warning:
Your property may be repossessed if you do not keep up repayments on your mortgage or other borrowing secured against it. Property values can fall as well as rise. Development and property investment also carry additional risks, including changes in market conditions, construction costs and the timing of property sales.
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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.
