There are a number of luxury assets which can be considered when a client is looking to raise capital for a property purchase. Our wide network of lenders means we can maximise assets including fine art, antiques, classic and luxury cars, jewellery and diamonds, luxury watches, luxury handbags, gold and fine wine, when securing a high value mortgage.
Everything from a Rembrandt to a Jeff Koons can be considered when securing a mortgage. An artwork’s value will be carefully investigated in terms of the artist, its uniqueness, the demand for such a piece, sale records and any data gleaned from galleries and auctions. Some lenders will require physical security of the piece or collection, but we work with a lender who will allow you to keep possession of it throughout the loan term.
When it comes to antiques, specialist valuers will consider items from Art Deco chandeliers to modern chandeliers. Valuations will be based on current market conditions.
Jewellery and diamonds
Jewellery and diamonds will be assessed in terms of their make, material and any gemstones will be investigated. Makers including Tiffany & Co and Cartier add significant value when it comes to resale, whilst being made of white, yellow or rose gold or platinum and its carat weight all hugely impact the valuation.
Diamonds are valued by looking into clarity, cut, colour and carat. Certification from the Gemological Institute of America, the European Gemological Laboratory, the International Gemological Institute or the Gemological Association, are also taken into account. Sapphires, rubies and other precious stones are certified by the Swiss Gemological Institute and Gubelin.
Dependent on the brand and model, luxury watches can also be used as security for property finance. The condition it’s in, any damage or restorations, the rarity of the piece and its age will all be considered when the valuation takes place.
If there are any papers relating to the original sale, or it’s in its original box, this will add value to the watch. Valuers will also look at auction records and cross reference with registers of lost and stolen items.
Luxury handbags are a further asset which can be leveraged on high value mortgages; brand, model, material, condition and accessories purchased with the handbag will all add to an asset’s value.
If the original receipt or papers are available, along with the dust cover, this will also increase a handbag’s value.
Dependent on the carat of a piece and daily gold trading price, gold can be leveraged to secure a large mortgage.
Some lenders will accept a number of classic car brands as security, including BMW, Mercedes, Bentley, Ferrari, Aston Martin and Audi. In order to ascertain the security of the asset, a number of things will be assessed; the V5 certificate of ownership, the trade value – as specified by a number of industry systems – auction history records, and a specialist will verify the trade value based on the car’s year, make, model and overall condition. The lender will then typically lend up to 50% of the car’s trade value.
Finally, a collection of fine wine can also prove valuable when looking for high value property finance. Value judgements are made based on the name, vintage, condition of the cork and labels, and ullage level. Original cases are also preferable as is there storage – i.e. they should be stored in a climate-controlled cellar, for example – and original sales documentation will also maximise a collection’s value.