Luxury asset finance is a very specialist part of the market. Lending is risky because demand and prices can fluctuate significantly, plus there is always a risk of theft and damage, so lenders always tread with caution. Usually, lenders will allow you to borrow in the range of around 50% of the total value of your luxury assets. Because of the costs associated with this type of lending, you will generally need to have a single collection of luxury assets valued at £700,000 or more. However, most lenders will prefer that you can put down security of around £1 million or the equivalent in another currency.
Your assets will also influence what you can borrow. If you have a high-value art or wine collection, you will likely be able to borrow more than if you have a collection of Hermès handbags, for example. For jewellery, handbags and watches, you will usually be able to borrow amounts from £250,000 up to around £5 million, depending on your assets. If you wish to borrow against art, wine or cars, you may be able to borrow more, depending on the value of your collection.
Whatever you wish to use as collateral and however much you want to borrow, Enness will be able to source the most advantageous rates and terms for you. Acting wholly in your best interests and working to see the deal through to completion quickly and smoothly, you will benefit from Enness’ experience and lender network. Transactions will move fast, and Enness will help you save both time and money with a luxury asset finance deal custom-built for you.
Borrowing against luxury goods is complex, so this type of lending is only possible if you have significant luxury assets. You will most likely find it makes sense to borrow against a collection of luxury goods rather than a single luxury goods item. However, in some cases, if the value is high enough, you will be able to use a single item in your collection as security. Lenders will usually have just as much interest in using a £75 million Picasso as collateral for a loan as they would using a portfolio of art that is valued at the same amount, for example.