Not only has the demand for bridging loans grown in the UK, we are also seeing clients requiring short term financing overseas. For example, we have recently completed a couple of deals for a client in Germany.
The first included raising capital on the client’s family residence in Germany. In order to help get over compliance issues with cross border lending on family residences, we were able to set up a Special Purpose Vehicle (SPV) of which we can lend to in order to complete the loan, taking a debenture on the company and a first charge on the property
The second we secured €1,200,000 against a car dealership contract. The client had sold the franchise but due to the nature and legal process in Germany was not due to receive the money until late January. Through our contacts we were able to facilitate the loan with a private investment company and completed the deal within two weeks.
Why has international bridging become more prevalent?
In many respects Europe as a whole is not set up for equity release or short term financing. However, with the high-profile events of last year and a relatively strong Euro, clients are keen to capitalise on this situation. The ability to unlock equity in a property that would otherwise remain dormant gives way to a whole host of investment opportunities. The demand is most definitely there as we recently maxed out one lender’s entire European loan book.
How can Enness help with international bridging requirements?
We have a few key lenders that we work closely with who understand our clients’ needs. As Enness grows and diversifies into new markets, we are able to forge new relationships with private investment companies, assets management firms and multinational banks to ensure we can cater for the increased demand for international bridging.
Are there any key locations where demand for international bridging is prevalent?
We have seen a marked increase in demand for Mallorca with clients looking to acquire and develop hotels and luxury properties in Palma. The South of France is always popular due to the history of the French Riviera and monetary value of the properties. Other noteworthy locations include Portugal, Dublin and mainland Spain. These regions at present represent the best opportunities for investors and international clients alike to take advantage of a previously untapped source of finance.