- Client: UK Nationals, UK residents
- Portfolio Value: Approximately £12m
- Loan Amount: Approximately £7m
In this case, Enness was approached by a client who needed to organise the transfer of ownership of a portfolio of properties.
As well as needing to find a lender who was comfortable with the transaction, we needed to not only raise sufficient funds to clear the outstanding loan but raise extra to cover the sizeable CGT liability that would become due at completion.
The challenges for this case were numerous. The first being finding a lender who could accept the structuring of the transaction proposed by the accountants. The second being affordability, even at the fairly low gearing, some of the properties had low yields, which adversely affected the overall borrowing power. Finally, it came to light that the individuals taking over ownership of the properties had some company liquidations in the background due to Covid.
Moving quickly, Enness successfully negotiated market-leading terms from a lender who could accept all complexities of the case. Given the strong relationship we have with the lender, we were able to request a reduction in the rate and fees that the lender charges. This enabled us to stretch the borrowing a little further to achieve the required loan amount to pay off both the existing mortgages and to cover the additional fees and tax liabilities.
Working with the accountants, tax advisors, and solicitors, we were able to structure the case to cover the current need to pay off the CGT liability, which became due at completion of the transaction. Doing it this way also helped the clients mitigate any future IHT liabilities that would become due.
Finally, working with the family accountants, we were able to explain to a satisfactory level the history of the company's liquidations in the background. Where most lenders would say no to this at the outset, we negotiated a yes, which the clients needed.
Enness is a whole of market brokerage which allows us to access the very best deals for our clients’ circumstances. Leveraging our strong relationships with these lenders, we can achieve the client’s goals within the desired timeframe while navigating the complexities of the individual cases. As well as the lenders, we are used to progressing quirky deals alongside teams of third-party partners to execute all manner of transactions
