Wine Loans

Lenders

Bordeaux Cellars has been broking loans secured against fine wine since 2011. During that time, we have arranged over 600 loans funded by over 100 lenders. Money has been lent to around 300 borrowers.

The total lent exceeds £120,000,000 and over £14,500,000 interest has been paid to lenders. The average loan size is currently approximately £250,000 and we routinely arrange loans of up to £1,000,000.

All loans are structured as chattel mortgages which are registered at the Royal Courts of Justice, Strand, London.

Loans are for 364 days and are available in sterling, US dollars, HK dollars, Euros and Swiss Francs.

Interest at 9–12% pa is paid gross, quarterly.

Table: Rates of interest paid to Lenders – 2017

Loans from Loans up to Rate per annum
£75,000 £99,000 9%
£100,000 £249,000 10%
£250,000 £499,000 11%
£500,000 12%
The rates quoted above refer to the ranges in sterling or the equivalents in other currencies at the exchange rates prevailing at the time the loan is arranged.

All loans are arranged at a very conservative 35% LTV and only against investment grade wines. This offers the lender the comfort of security of around 300% of the sum lent. The Wine Owners 150 index (of the top wines typically found in the collections against which we lend) has never dropped below 100% of its value in January 2007.

The highest month-on-month fall and annual fall were both 6% and the index has grown in value in 8 or the last 10 years. The value of the wines lent against would have fallen to a minimum of 94% of the original valuation over the year’s term of the loan.

Past performance is not a guarantee of future performance.

Graph showing £350,000 against the Wine Owner 150 index over the last 10 years

The graph above shows the value of a £1,000,000 wine portfolio made up of wines comprising of the Wine Owners 150 index and a loan of 35% (£350,000) made against that security.

This safe lending model allows us to offer the loans to borrowers at 15% pa + a 1% facility fee (which is similar to the rates charged for bridging finance secured against real property/real estate).

Screaming Eagle

A typical portfolio is shown below, together with the value of the wine on 19th June 2017 and the current values.

Wine Vintage Quantity Size (cl) Market price (19 Jun 17) Total (19 Jun 17) LTV (35%) (19 Jun 17) Market price (today) Total (today)
Domaine de la Romanee-Conti Echezeaux Grand Cru 2010 12 75 £1,064 £12,768 £4,469
Domaine de la Romanee-Conti Grands Echezeaux Grand Cru 2010 12 75 £1,130 £13,560 £4,746
Domaine de la Romanee-Conti Richebourg Grand Cru 2010 12 75 £1,431 £17,172 £6,010
Domaine de la Romanee-Conti Romanee Saint Vivant Grand Cru 2010 12 75 £1,228 £14,736 £5,158
Domaine de la Romanee-Conti La Tache Monopole Grand Cru 2010 12 75 £2,331 £27,972 £9,790
Domaine de la Romanee-Conti Romanee Conti Monopole Grand Cru 2010 3 75 £11,110 £33,330 £11,666
Domaine de la Romanee-Conti Romanee Conti Monopole Grand Cru 2009 1 75 £10,653 £10,653 £3,729
Domaine de la Romanee-Conti Romanee Conti Monopole Grand Cru 2006 3 75 £11,715 £35,145 £12,301
Domaine de la Romanee-Conti Romanee Conti Monopole Grand Cru 2005 3 75 £13,170 £39,510 £13,829
Henri Jayer Vosne-Romanee Cros Parantoux Premier Cru 2001 2 75 £7,424 £14,848 £5,197
Henri Jayer Vosne-Romanee Cros Parantoux Premier Cru 2000 2 75 £8,250 £16,500 £5,775
Henri Jayer Vosne-Romanee Cros Parantoux Premier Cru 1999 2 75 £7,782 £15,564 £5,447
Henri Jayer Vosne-Romanee Cros Parantoux Premier Cru 1995 2 75 £8,460 £16,920 £5,922
Chateau Haut-Brion Saint-Emilion Grand Cru 2010 12 75 £575 £6,900 £2,415
Chateau Haut-Brion Saint-Emilion Grand Cru 2009 12 75 £542 £6,504 £2,276
Chateau Haut-Brion Saint-Emilion Grand Cru 2005 12 75 £533 £6,396 £2,239
Chateau Haut-Brion Saint-Emilion Grand Cru 2000 12 75 £500 £6,000 £2,100
Chateau Haut-Brion Saint-Emilion Grand Cru 1990 12 75 £567 £6,804 £2,381
Chateau Haut-Brion Saint-Emilion Grand Cru 1989 12 75 £1,433 £17,196 £6,019
Chateau Haut-Brion Saint-Emilion Grand Cru 1982 12 75 £558 £6,696 £2,344
Chateau Lafite Rothschild Pauillac Premier Cru 2010 36 75 £575 £13,800 £4,830
Chateau Lafite Rothschild Pauillac Premier Cru 2009 36 75 £617 £22,212 £7,774
Chateau Lafite Rothschild Pauillac Premier Cru 2008 36 75 £575 £13,800 £4,830
Chateau Lafite Rothschild Pauillac Premier Cru 2007 36 75 £508 £18,288 £6,401
Chateau Lafite Rothschild Pauillac Premier Cru 2006 36 75 £527 £12,648 £4,427
Chateau Lafite Rothschild Pauillac Premier Cru 2005 36 75 £650 £15,600 £5,460
Chateau Lafite Rothschild Pauillac Premier Cru 2004 36 75 £504 £12,096 £4,234
Chateau Lafite Rothschild Pauillac Premier Cru 2003 36 75 £750 £18,000 £6,300
Chateau Le Pin Pomerol 2010 24 75 £2,933 £70,392 £24,637
Chateau Le Pin Pomerol 2005 36 75 £2,162 £77,832 £27,241
Chateau Le Pin Pomerol 2001 36 75 £2,005 £72,180 £25,263
£672,022 £235,208
Original loan
Original LTV 35%
Current LTV