Fergus Shires
What is your role and main area of responsibility at Enness Global?
I work in the Specialist Lending team at Enness. I mainly assist real estate professionals seeking traditional commercial finance, portfolio refinances, development facilities or short-term solutions. Often these borrowers tend to require a more specialist approach to finance for various reasons not limited to their company structures, the jurisdictions in which they live, personal circumstances, or whether they need someone to deliver a funding solution within a short time frame. Every case is different, and rarely are they straightforward.
Can you describe the typical needs your high-net-worth clients have that ultimately result in the need of source bridging finance for them?
Especially today, no one enquiry is the same as the next. Just this year we’ve seen a vast selection of issues that we have to solve for our clients; lack of liquidity, dealing with offshore structures, or the need to capitalise on an off-market purchase, an auction purchase, a quick sale.
We often see situations where clients are asset rich, but may not have the liquidity to complete an acquisition or a refinance in the desired time frame, and it is down to us to accurately assess their situation, and to suggest the most suitable way forward, be it by cross collateralizing their existing assets or by working with a lending who acknowledges a genuine discounted purchase.
What are the primary challenges you need to overcome to source the best short-term finance outcomes for your clients?
In the current market – reliability. There are an incredible amount of options available to a prospective borrower today. Often people will approach lenders directly who are unsuitable for their requirements, and who ultimately may not deliver the finance they require. This wastes time and money, can be extremely stressful, and can mean that a client misses out on an opportunity unnecessarily.
Could you share a recent success story or case study where you provided bridging finance solutions to one of your high-net-worth clients?
A client had the opportunity to acquire the penthouse within the block of luxury apartments they already resided in, at a significantly discounted price. The window to complete the transaction at a discount was tight, and the client did not have the liquid funds available at that time. They were seeking 100% of the purchase price and associated costs.
The client did however have a substantial property portfolio with enough equity to make the transaction work, but it was complex as the properties that were to be used as security for the loan were held in various structures, including a trust. We had to coordinate between the lender, their solicitors, and the client’s solicitor. We kept up daily communication with the lender’s underwriting team, the lending officer, and the legal teams to make sure this was delivered in less than a month. But ultimately we were successful in securing a £7m short term finance facility for our client.
What trends are you currently observing in the market when it comes to securing short-term finance for your high-net-worth clients?
The UK lending market has become more complex for prospective borrowers. Where clients have historically prioritised cost of funds, a notable shift is the requirement for certainty of funds superseding that for many. We have spoken with a lot of clients who have approached lenders directly who have ultimately let them down, or they have had no joy elsewhere.
It is a shame as there are so many quality, reliable funding partners available today – hundreds – but the key role we play as a whole of market brokerage with huge amounts of experience is to listen to our clients’ requirements and goals in detail, and to make our recommendation based on the facts and to explain it clearly.
Finally, in your experience, what are some of the key factors that contribute to achieving a successful outcome for your clients for clients?
It is essential to carry out in depth due diligence with a client, understanding their personal and professional circumstances, what they want to achieve, and the barriers that need to be navigated to ensure a successful transaction. The lending market is incredibly complex, and making sure that we have every detail available before assisting our clients is so important.
Enness is a hugely experienced brokerage. We now offer numerous different services outside of just real estate to our clients and can add significant value where others can’t. The nature of the clients we deal with means that enquiries are rarely straightforward transactions. We don’t just maintain incredibly strong relationships with all lenders in the UK, but can also provide expertise with regards to other professionals that contribute to the lending process – we have dealt with vast amounts of valuers and solicitors – and those relationships are so important from the start of a transaction through to the end.
Sometimes one of the most rewarding things we do is to act as a sounding board for a client looking at an opportunity which may not ultimately proceed, but so often it builds stronger future relationship.
Chris Whitney
What is your role and main area of responsibility at Enness Global?
I am Head of the Specialist Lending team. We look after all the commercial real estate finance, development, larger residential portfolios and the more ‘difficult’ cases that need a more specialist solution. That might be because of the borrowers circumstances, property issues or simply just time challenges. All of these areas could need a term loan solution or a short-term solution.
Can you describe the typical needs your high-net-worth clients have that ultimately result in the need of source bridging finance for them?
I find my clients are generally entrepreneurial in nature. This means they seek to exploit opportunities that often mean we are not talking about taking a straightforward off the shelf mortgage product.
The situation will often dictate that we need to deploy funds swiftly (sometimes in just a few days), perhaps we don’t have time to obtain a full valuation report. It may be an under-value sale where we need a lender to lend against value and not purchase price in the first instance. There may be issues with the asset at point of purchase i.e. planning, contamination, defective title, missing warranties, unusual ownership structures - the list is endless.
In essence we often have to fund a transaction on day one where there are a few challenges to overcome. We fund it as it comes, help round off any rough edges and then move it into a mainstream term loan as and when required. I would say there is no ‘typical’ transaction as they are all different and generally require a bespoke solution. We have seen most scenarios over the years but love to be challenged!
What are the primary challenges you need to overcome to source the best short-term finance outcomes for your clients?
There are hundreds of lenders in this space. Some well-known that others may only seek to precure business via Enness. Cost of funds is often the primary concern for a borrower. However, the real skill of a seasoned broker is to understand the lender’s processes. Which valuers will they use, will they appoint a Quantity Surveyor, which law firms can they use, how will the case be underwritten etc. Cheap money is great but if it isn’t forthcoming in a timely manner then that is irrelevant.
We have to put certainty of delivery at the forefront of our minds. Clients can spend weeks with a lender on a loan that was never going to happen. Wasting time, money and ultimately the client doesn’t get the desired outcome which helps no one.
What trends are you currently observing in the market when it comes to securing short-term finance for your high-net-worth clients?
Sadly we are seeing a lot of clients coming to Enness after being let down elsewhere, often at the last minute. At this point the client has often paid fees to the lender, valuer and solicitors only to find they have to do it all again. Sometimes they have used an inexperienced broker or tried going to a lender direct. The above scenario costs the client money, damages reputations and ultimately puts the opportunity in jeopardy.
Enness charges fees for its services. However, we get it right first time which ultimately saves the client money and delivers the desired outcome in a timely manner. It’s all about the value we add.
Finally, in your experience, what are some of the key factors that contribute to achieving a successful outcome for your clients for clients?
In my experience – the key attribute IS experience!
We have decades of industry experience. Most of our Specialist Lending Team have long standing financial services experience as well as being seasoned brokers. We are intimate with the lenders, valuers, solicitors and all the key influencers in any transaction.
Not only do we know all the key lenders the lenders know us and we are held in very high regard in delivering quality business to them. We help manage the loan cycle from cradle to grave. This often gets us preferential pricing and terms. We seek to protect both lender and borrower as ultimately their interests are aligned.
To quote a client today “I thoroughly appreciated your effort on being a mediator and as well as a supporting both parties, that’s real credit to you as a person & your professional capacity”.
