Benefits of Luxury Asset Finance

Date 9 August 2022

If news about the ongoing cost of living crisis has got you down, you may now find yourself worrying over your finances like never before, searching for more and more ways to stay afloat.

Borrowing from a lender could be one such method – whether it be through a loan, credit card, overdraft or mortgage.

However, while each of these forms of borrowing may sound great in principle, they could actually leave you worse off than you were in the first place. Therefore, it’s important to do your research in advance of agreeing to anything you’re financially unsure about.

This is where releasing equity in your high-value assets can make all the difference – and we’re here to tell you why.

What is Luxury Asset Equity Release?

In simple terms, equity release refers to the process of accessing the equity – or cash – tied up in a particular asset.

While most forms of equity release relate to property, you can actually release money from a huge range of other high-value items, including cars, watches, art, jewellery, alcohol and other collectables.

However, the amount you can borrow will vary from item to item and will largely depend on its estimated market value. Generally speaking, the higher the value of the item, the more equity you will be able to release from it.

How Does Releasing Equity from High-Value Assets Work?

A flexible solution to a wide range of financial problems, releasing equity from a high-value asset is a simple process that’s incredibly easy to understand.

Pretend, for example, you are the proud owner of a luxury watch collection worth approximately £100,000. Releasing equity from this high-value asset will effectively allow you to borrow any sum between £5000 and up to 60% of the collection’s market value (i.e. £60,000 for this example).

So, whether you need a quick couple of thousand to fund an upcoming holiday, or significantly more to build a home extension, the amount you borrow is entirely up to you and will vary depending on your exact circumstances.

Once you’ve decided on how much you want to release, the lender will then perform a virtual valuation on your watch collection, before providing you with an offer in principle. This will detail how much the collection is perceived to be worth, the amount you’re choosing to borrow and the length of your repayment plan.

Once you agree to this, a physical inspection will then be carried out to check if the asset is worth as much as it appears. If it is, the collection will be retained as insurance by the lender and the loan will be paid into your account the same day. But, if it’s not, the loan’s terms will be revised and you will receive a new offer in principle.

After you’ve paid back what you owe, the watch collection will then be returned to you and you will, once again, be able to own and use them as you wish.

The Benefits of Releasing Equity from High-Value Assets

As with any type of borrowing, there are a number of things to consider before entering into any contract.

However, because of the financial difficulties of recent times, releasing equity from high-value assets is fast becoming a more and more popular option for consumers, providing an attractive alternative to other types of borrowing that are complicated by jargon, hidden fees and high rates of interest.

If you still need convincing though, we have listed just some of the key benefits that releasing equity from your high-value assets could offer for you below:

Equity Release Provides Instant Credit

From spontaneous marriage proposals to unexpected house repairs, financial difficulties often appear when you least expect them.

One minute you can be doing absolutely fine financially, keeping on top of your incomings and outgoings, then the next, you suddenly find yourself with an unforeseen bill, struggling to keep up.

Releasing equity from your high-value items offers a practical solution that takes the stress out of these situations.

Whether it be a piece of art, jewellery or another type of high-value asset, releasing equity from items like these can provide you with the credit you need to get out of financial trouble both quickly and easily.

Plus, as mentioned above, the process of releasing equity is pain-free and can even be done from the comfort of your own home. As such, there’s no need to worry about queuing up at the bank or waiting weeks for a credit card or bank loan application to be approved.

Here at Verus Capital, we can transfer the funds you need on the same day you apply – we’ve even done it in as little as two hours before.

Equity Releasing Means You’ll Retain Ownership

Contrary to what some people think, releasing equity from a high-value item doesn’t mean you’ll hand over the ownership of that item. It simply means you are giving the lender temporary ownership of that item, in order to release an amount of money against its market value.

While the lender will technically be responsible for the item throughout the duration of the loan, as long as you make all of the repayments expected of you, it will still belong to you and you will get it back as soon as the loan’s repayment period has ended.

Plus, since the item is acting as a form of insurance to the lender, you can feel rest assured that it will be well-protected, stored with the utmost care, and kept as safe and secure as possible for the duration of the loan.

Because of this, the item should then retain – or even grow – its market value over the long term, before being returned back to you in the same condition it was originally received.

Equity Release Has an Easy Approval Process with No Credit Checks

When applying for other forms of borrowing, credit checks can have a massive influence on how long it takes to get approved or not.

This, coupled with the mass of information lenders generally require for applications, can take up a lot of time and effort, with no guarantee you'll even receive the funds you need.

Fortunately, however, releasing equity from high-value items bypasses these convoluted processes and is much quicker overall; once your item has been assessed, you will either be offered a short-term loan on the spot, or you won't.

There's no need to provide any evidence of where you live, how much you earn or your previous credit history.

Here at Verus Capital, we are only interested in the item itself. So, as long as it holds a market value, we'll be happy to help you release some form of equity on it without running a credit check or asking for any unnecessary details.

Equity Release Gets More out of Your Items

During times of financial difficulty, it can be easy to think that you'll have to sell what you own to make money more quickly. However, this isn’t strictly true.

Releasing equity from a high-value item can allow you to not only receive the funds you need but also get more out of the item in question.

Say, for example, you own a highly valued classic car that you rarely use anymore. Rather than letting it collect dust in the garage, releasing equity from it instead could offer a much more practical solution.

Plus, you could actually earn more from equity release than from selling. This is because the process of selling relies on finding a buyer who actively wants to purchase what you're selling.

Therefore, this increased level of desperation makes it more likely that you'll settle for a price lower than the item is actually worth.

Releasing equity from it, on the other hand, will only ever take into account the item's actual market value, providing you with a much fairer deal.

Final Thoughts

Our team at Verus Capital have helped a huge number of clients over the years to release equity from a wide array of high-value items.

Whether it be the £20,000 loan recently secured against a Rolex Daytona watch, the £167,000 loaned against a 1958 Aston Martin DV2 Mark III Coupe, or the £150,000 bridging finance offered against a Buy to Let property purchase in Scotland, we take great pride in the short-term loan services we can provide.

As a privately-owned, family-run business, we understand all too well how difficult times of financial hardship can be. That’s why we make it our mission to help clients wherever we can, releasing equity from items that range from pieces of art to bottles of wine.

To find out more about us or the high-value items we can release equity from, please do not hesitate to get in touch.

With a combined three decades' worth of experience, our team is also always on hand to help. So, feel free to give us a call on 0333 577 3000 or drop us a message at info@veruscapital.co.uk with any questions or queries you might have.

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