Jersey Bridging Loans

• • Yes. As a leading financial centre, foreign nationals come to Jersey to pursue professional careers or benefit from Jersey’s High Value Residency scheme. There are no restrictions on which nationalities we can lend to providing borrowers meet compliance and AML regulations. Provided the borrower has the relevant permits to own, develop or buy property on Jersey, we can lend.

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We deliberately have a wide geographic footprint but a relatively small suite of products. The reason for this is that to be able to provide international bridging globally at the loan size we offer, we need to understand international structuring, real estate markets, credit and borrowers. We do this by having real depth of experience in one type of asset: prime residential property.

Because we are based in Guernsey, however, we can offer more varied bridging products as we are experts in all aspects of the local market. This means we can consider development loans in Guernsey and Jersey but not elsewhere.

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No. We lend in cross-border deals where the bridging loan is secured against Jersey property but is used off island. In this case, ‘internationally’ can mean the UK or in another country – we are happy to see either scenario. Naturally, we also lend in deals where both the asset and the loan are located in Jersey.

As a lender with an international outlook, we know that borrowers often want to use Jersey property as security for a loan, but they will want to use loan capital outside Jersey. This can happen for plenty of reasons – buying international property quickly, investing, consolidating international debt etc. We can lend in deals where the security is in Jersey and the loan is deployed internationally, or in scenarios where the borrower may not be a full-time resident in the country where the loan is deployed.

In any cross-border finance deal, we require that borrowers have a solid plan of how the funds will be managed.

Yes. We understand how wealth, assets and capital flows are set up for high-net-worth borrowers. As a team that has international and Channel Islands experience, we understand the various on and offshore entities that will be used to structure wealth. This can be anything from trusts, funds, foundations, SPVs, limited companies and other they of corporate entity.

More than just understanding when borrowers use certain types of structure, we know why they are used and how to build loans around them, either to facilitate their use or to streamline lending. We understand how, when and why UK and international structures will be part of a deal and we can accommodate these with ease. We have experience structuring deals that involve Jersey or internationally domiciled SPVs, funds, philanthropic entities, trusts and corporate entities.

Our clients tend to be high-net-worth individuals. As a group, HNWI have very broad backgrounds, their wealth, income and assets tend to be too diverse and unique to be able to match to specific lending criteria to. As a result, we do not have fixed lending criteria.

To serve as HNWI as possible, we have deliberately kept our criteria to a minimum and our approach as broad as possible. As long as we see a quality borrower and assets – something Jersey has in spades – we do not require that borrowers meet minimum requirements or have a certain profile. This means we can consider borrowers with unusual, delicate or very complicated backgrounds.

Do you offer international loans structured through entities?

Yes. Tenn is headquartered in Guernsey. Our team has experience working with UK and non-UK structures and international capital flows as well as residential debt in the Channel Islands. We understand how, when and why UK and international structures will be part of a deal and we can accommodate these with ease. We have experience structuring deals that involve SPVs, funds, philanthropic entities, trusts and corporate entities.

Yes. We lend in pounds sterling as standard. For deals that involve Jersey property or structures, we can arrange multi-currency lending, including in EUR, CHF and US dollars as standard. We lend in other currencies if needed.

Yes. We work closely with our clients’ advisers all over the world. We also work with Jersey-based service providers (tax, law, corporate and trust structuring providers, accountants and so on). Here, we can help you structure short term finance against a Jersey property effectively, or we can offer bridging loans against international property in deals that involve  structures domiciled and administered in Jersey.

We offer high-value bridging finance – anything above £1 million. We are comfortable offering very large loans, including significant loans against a single asset. We are also able use assets in multiple jurisdictions to maximise what can be lent.

Jersey bridging finance starts at 0.55% PCM. The cost of the loan will depend on how difficult it is to deliver. Deals that involve multiple structures, assets or a borrower with a very complex background or requirements will cost slightly more but will still be competitive considering how technical they will be to deliver.

The location of the asset or having lots of international or multi-jurisdictional elements in the loan is not a barrier to offshore lending.

Tenn can assist property developers to raise capital for their projects in Jersey. Based in Guernsey, we have a unique understanding of the needs of developers in the Channel Islands. We are keen to lend for development projects in Jersey, and if we can finance a project, we will.

We are open to lending against high-value development projects in Jersey, as well as smaller projects. We can consider developments with various loan-to-value ratios and end values. We believe in finding fast, practical solutions, and we work closely with developers to find the right collateral to see the deal go ahead.