What is luxury asset lending?

Luxury assets lending is a type of bridging loan that has become more prominent due to the vast increase in the value of luxury items.

Items like classic cars, jewellery, luxury watches and Post War Fine Art has increased by 171% in the past decade. Recently a Ferrari Daytona was found in filthy condition after being left in a barn for 40 years and sold for £1.5m at auction. With prices increasing every year many people do not realise the value of assets they own and how they can be used to secure additional finance.

Specialist lenders like Borro have their own in-house valuation teams or will work with a network of appraisers to get accurate estimates in a timely manner so loans can close in as little as 24 hours.

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These types of loans are ideal when a development or property project faces an unforeseen problem:

  • Funding shortfalls on development projects
  • Down valuations of the original security
  • Closing delays

If you have clients who need funding immediately but don’t want to liquidate their assets, luxury asset lending is a perfect solution.

Here’s a quick example of how luxury asset lending helped save a development project.

A valuation for a bridging loan was down valued, creating a £100,000 cash shortfall. With the lender at the maximum LTV (75%), the broker on the deal knew the client had a car collection.

The client used a classic car to make up the £100,000 gap and complete the transaction. Within 24 hours the assets were valued and offer sent out. The lender wired funds as soon as the client signed their loan agreement, meaning the transaction completed well before the seller’s deadline.

If you would like to learn more about luxury asset lending then call the specialist at Y3S Bridging & Commercial on 0800 014 7798