FINE ART LOANS
Over the past few years, art loans are becoming increasingly popular for collectors and art investors around the world.
If your fine art is of considerable value and you would like to retain ownership, it would, therefore, be beneficial to use it as collateral for an art loan. This allows individuals to raise money from art works instead of selling the works. Going this route means you would avoid the fees or taxes that are normally attributed to selling an artwork while retaining ownership of the artwork.
Fine art secured lending against high-end artworks can be arranged quite quickly, and the loan to value ratio will depend on the value of your artwork. Some art lenders may offer you up to 60% of the value of the artwork, and the art can remain in your possession. However, this depends on the whichever lender you have decided to use.
Art valuations are based on past, and recent sales prices of comparable works that have been sold via auction, these valuations are for lending purposes only. With some lenders they require the asset being handed over to the lender, who will then be responsible for its security, insurance, maintenance and safety.
A loan would be based on the quality of the work and with some lenders they look at the creditworthiness of you as a borrower. After a lender conducts a market valuation of the art or collection and and provide a loan, they would have a lien on your artwork until the loan is repaid.
Do let us know if this is something you are considering and we can arrange for a consultation in complete confidence at your convenience.
Contact us by email info@domos.co.uk
By Telephone +44(0) 77 1937 0000
