Offshore Bridging Loans

• • Tenn is a specialist in the offshore bridging finance space. Offshore bridging finance is:

  We have enormous expertise in offshore lending and are happy to deliver significant loans in this space.

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We are one of the few lenders who have a deep understanding of offshore bridging finance. Tenn is headquartered in Guernsey. As such, we are well-placed to understand what is needed to deliver offshore bridging finance. This includes everything from offshore structures to cross-structure lending where multiple entities are involved in the deal. These include deals where both offshore and onshore structures are used. Many of the loans we write and terms we offer involve more than two structures. There are no restrictions on where we can consider lending.

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Many high-net-worth individuals own real estate in one or more offshore locations. There are lots of reasons for this from fiscal efficiency to citizenship through investment, as an investment, a holiday property, rental or to live in part-time.

Despite owning very high-value real estate and often being very wealthy, lending against offshore real estate remains challenging. Some lenders cannot lend in offshore jurisdictions and others find it is challenging to accommodate the structures that are usually used in such deals. These can be anything from property ownership structures to lending to a corporate entity or understanding how a borrower’s net worth or income is structured.

Identifying this gap in the market and knowing there was significant demand for it, we launched Tenn to make it easier for borrowers to lend against assets in offshore jurisdictions and structure bridging finance through offshore structures.

Yes. Tenn’s offshore bridging finance offering comprises of two different elements: property located offshore and in deals that involve offshore structures. We are experts in delivering any loan that involves offshore structures.

We understand how, where and why a borrower will use offshore structures and how to arrange the loan using these entities.

We can lend in deals that involve any offshore entity or structure. What these are will depend on the borrower’s wider wealth planning, estate planning, confidentiality requirements, fiscal planning, optimising how asset ownership and how they structure their income and capital. Trusts, SPVs, funds, philanthropic entities.

We can lend in deals that involve Guernsey, Jersey, Isle of Man, BVI, Cayman, Singapore, Hong Kong, Gibraltar or Swiss structures of various types.

Yes. As long as the borrower has been property advised and meets their reporting and fiscal commitments with regards to their structures and property deals, we can consider lending. We have an in-depth knowledge of deals that have offshore and onshore elements and will be able to structure these accordingly.

• No. In many cases, a property in an offshore location will not be the same place that a borrower generates their wealth. They may simply own an investment property or holiday home ‘offshore’, but they will want to use the loan capital elsewhere. We call this cross-border lending. We are happy to facilitate deals where the loan is used in a different country than the security.

Yes, we can lend against multiple assets in offshore locations. Usually, this happens when a borrower wants to maximise what they can borrow without taking several loans against several properties. We can offer a single loan using more than one property as security to help clients borrow more, unlock capital from multiple properties and source a one-stop solution for lending.

Yes. We understand why sophisticated and high-net-worth borrowers would want to release equity from international properties and we are happy to lend in these circumstances.

We do not offer lending products and we do not have fixed lending criteria. In our experience writing offshore loans, the borrowers, assets, exits and reason for taking the loan are too distinctive to allow for criteria. Requiring every borrower meets fixed lending criteria would make the group people we could lend to, overly narrow. We are set up to write international bridging loans to as many quality borrowers as possible. Offshore bridging is truly case-by-case lending specialisation.

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 writes every loan to order because the structuring requirements and complexity of these loans will be unique – it is not possible to offer a fixed rate or product. Our loans start at 0.55% PCM for prime property in the most popular and liquid prime markets, including the UK. In other locations prices start at 0.8% PCM.

The fact that offshore structures are involved in a loan does not necessarily mean a loan will be much more expensive. We are set up to lend via structures and in deals that involve offshore assets and entities. We have exceptional understanding of offshore bridging and can deliver deals with ease that would be impossible in other parts of the market.