- Client Type: UK-based collector and parent of university students
- Asset Type: Art collection and classic car collection
- Funding Requirement: London flat purchase
- Loan Type: Combined art-backed and classic car-backed facilities
The client, a seasoned collector with both a substantial art collection and classic cars, sought liquidity to purchase a London flat for his three daughters studying in the city. Traditional mortgage financing through a trust was considered but deemed overly complex, restrictive, and slow. The client preferred a solution leveraging his existing assets, allowing speed, flexibility, and ownership preservation.
- Artworks were split between home display and professional storage, requiring logistical planning for valuation and collateralisation.
- Classic cars had previously been leveraged, but renewal and extension were needed to meet full funding requirements.
- The client desired discretion, speed, and to keep the property unencumbered by traditional mortgage structures.
- Art-backed lending: The collection was valued at approximately £1.6 million, supporting a 50% LTV facility of £800,000. Works in home display were moved to approved storage to meet collateral requirements.
- Classic car-backed lending: Existing loan structures were renewed and extended to supplement the art facility, raising the remaining capital.
- This combined approach allowed the client to leverage tangible, appreciating assets efficiently while keeping the London flat unencumbered.
The client secured the required funding for the flat efficiently, providing speed, discretion, and flexibility. His property remains mortgage-free, the art and car collections remain fully intact, and his long-term ownership strategy is preserved. The solution demonstrates how asset-backed lending can provide liquidity without compromising investment strategy or ownership.
