There are just over 600,000 ultra-high-net-worth individuals globally, and the number of wealthy individuals worldwide is expected to increase by 28% by 2028. An ultra high net worth individual is often described as someone with a net worth of at least $30 million. These individuals belong to the richest segment of the global population and control a significant amount of wealth. They also live in the world’s most expensive properties, and are a segment Enness Global have been serving since being established in 2007.
Do Rich People Have Mortgages
Recent shows like Channel 4’s Selling Super Houses have shone a spotlight on super prime property, with eight aspiring estate agents competing against each other to close deals on homes with jaw dropping price tags, including Boy George’s £17 million Hampstead Heath mansion. Another recent series from Netflix, called Buying London, focuses on high end estate agents DDRE, as they sell some of the capital's most luxurious and most expensive properties. But of course for those sitting outside the ultra segment these properties are often purely voyeuristic.
In the world of real estate, super prime refers to properties located in the most desirable areas and which far surpass the standard in terms of amenities and overall quality. In London, a super prime property generally comes with a price tag of £10 million and upwards, representing the top 1% of the property market.
These properties offer complete luxury, an abundance of space and an environment fit for a monarch or magnate. For wealthy individuals, having access to a range of amenities at their fingertips is essential for their busy lifestyle. There are some exciting new developments in London which fit the bill, such as Park Modern which offers unparalleled views of Kensington Gardens and Hyde Park, extended ceilings, valet and concierge services and as well as leisure suite with pool, gym, and treatment rooms of the highest quality. Nearby, an apartment at No. 18 Porchester Gardens comes with an exclusive membership for The Whiteley residents' reception lounge & library, club room and the Six Senses spa and swimming pool.
The current record in London for the most expensive apartment is held by billionaire property mogul Nicky Candy, who owns the £175 million penthouse, One Hyde Park. However, there’s a new kid in town, tipped to become the ‘most expensive address in the world’. 1 Mayfair, on the doorstep of Park Lane and Hyde Park, features 24 apartments and 5 studios, and is scheduled for completion in late 2025.
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Looking beyond London, topping the list of the world’s most expensive properties is Antilia, located in Mumbai, India. Owned by Indian business legend Mukesh Ambani, Antilia is a 27-story skyscraper with an astounding 400,000 square feet of living space. Its estimated value is between $1 and $2billion. Another notable super prime property is Villa La Leopolda, owned previously by King Lepold II of Belgium, and later purchased by Fiat and Ferrari owner Giovanni Agnelli. The villa on the French Riviera is the third-largest home in the world, covering roughly eight hectares of land. It contains 19 bedrooms, a bowling alley, and a cinema, as well as several sports courts and 12 pools. It is said to be worth in the region of $750m.
What sets a Super Prime Property apart?
Super prime property is all about the exceptional, and therefore buyers of these properties are looking for exclusivity; think wine cellars, stables, home cinemas, spas, pools, gyms, underground parking and more. A super prime property is the cream of the crop, and those who own one will be used to the finer things in life, having stayed at some of the best hotels and properties in the world.
A super prime property usually comes with significant square footage of space or land, typically within a major city with access to iconic views and excellent transport links, or in the country, with proximity to areas of outstanding natural beauty. And often is one of a number of residences in a UHNWI’s portfolio.
Opulent design, the very best luxury amenities, and the finest materials are a must and many are located in historical buildings, but modern or old, unique architecture is key.
Security and privacy are also imperative and therefore many of these residences are set within private or gated communities, have CCTV and round the clock surveillance. These homes often come equipped with state-of-the-art technology, including smart home features and energy-efficient systems.
Should I buy a Super Prime Property outright or take a mortgage?
Whilst they can often afford to, most wealthy people don’t pay cash for properties because they can make a better investment with their money elsewhere. Ultra high-net-worth individuals likely have the ability to generate substantial returns on their investments, so if the return on an investment portfolio is higher than the interest rate on a mortgage, it makes financial sense to use their cash to invest elsewhere. Often it’s previous decisions like this that led to the accumulation and generation of wealth previously.
Even the richest can be cash poor and many wealthy individuals have their money tied up in assets, investments and businesses. Put simply keeping a mortgage can help maintain liquidity and cash flow.
In some countries, mortgage interest can be tax-deductible, so it can be beneficial to take a mortgage and offset the cost of borrowing. Borrowing can also allow individuals to purchase a more expensive property, and during high periods of inflation, the real value of the mortgage debt is eroded, whilst the property appreciates. Regularly paying a mortgage can also help maintain or improve credit score.
Where can I source an Ultra-High-Net Mortgage?
Look for a specialist mortgage broker familiar in dealing with the unique requirements of clients who have substantial assets or high incomes, and who can access private lenders and banks which exclusively serve wealthy individuals (often not accessible directly by borrowers). Enness Global for example is often cited as the mortgage broker of the super rich and has deep experience working with some of the world’s wealthiest individuals, and not just those in the UK. Conversations aided by their overseas offices, located in places such as Dubai, Monaco and Switzerland, as well as Mayfair, London.
Always ask for personal testimonials and case studies from other ultra high net worth clients, to ensure their credentials in dealing with similar clientele and super prime property transactions. A top broker will offer a personalised service, and tailor a solution that best suits your needs and complements your overall wealth planning goals.
Despite growing inflation, interest rates and affordability all affecting the general housing market, a recent report by Knight Frank confirms that global super prime (US$10m plus) markets have been more resilient. If you’re considering investing in the top end of the property market, please contact Islay Robinson for more information on million pound mortgages and to find out about our range of services for the ultra high net worth.
The views and opinions expressed in this piece are those of the author and do not constitute advise or a recommendation. They do not necessarily reflect the official policy or position of Enness and are not intended to indicate any market or industry viewpoints, or those of other industry professionals.
Islay Robinson, a founder of Enness, is widely regarded as one of the UK's leading mortgage brokers. He has been instrumental in delivering some of the most complex and high value mortgages in the UK.
