Enness was approached by a couple looking to purchase and renovate a property in the Provence-Alpes-Côte d’Azur region of France. The house had been unoccupied for several years and required extensive works before it could become a suitable family home.
The agreed purchase price, together with the planned refurbishment, meant the total project cost would be close to €900,000. The clients had already agreed terms with the vendor and therefore needed to secure finance within a relatively short timeframe.
There were several considerations for the application. The level of borrowing required was high relative to the property’s existing condition and value, meaning the lender needed to take account of the anticipated improvements. The clients had also previously been declined elsewhere because their self-employed income history was not considered sufficiently consistent. They had taken a year away from work after relocating to France, creating a gap in their financial records.
OUR SOLUTION
Enness approached a French private bank with experience in financing property purchases where refurbishment formed part of the overall requirement. The lender was familiar with the local market and able to consider the clients’ circumstances alongside the proposed works.
The application was structured to cover both the acquisition and renovation costs. The lender agreed to consider the overall project rather than assessing the purchase independently from the planned improvements, allowing the clients to proceed with the level of borrowing required.
A facility of €872,279 was arranged, including €250,000 of Assets Under Management (AUM). The structure also allowed the pledged assets to be released progressively as capital was repaid into the property, subject to the lender’s requirements and updated valuations.
The long-term fixed-rate structure provided the clients with greater certainty over their repayments while allowing them to fund the purchase and refurbishment through a single financing arrangement.
This case demonstrates how specialist international mortgage structuring can help where a property requires substantial renovation and the borrower’s income history does not follow a conventional pattern. A lender prepared to consider the wider circumstances and intended improvements can provide greater flexibility than a standard lending approach.
Disclaimer:
This case study is for illustrative purposes only and does not constitute financial, legal, tax or investment advice. Finance is subject to status, underwriting, affordability, property suitability and lender criteria. Terms, rates, LTVs and availability may vary depending on individual circumstances.
Risk Warning:
Your property may be repossessed if you do not keep up repayments on your mortgage or other borrowing secured against it. Property values can fall as well as rise.
Information contained in our case studies is for market and illustrative purposes only. In some cases, these may be made up of multiple cases and are for illustrative purposes only.
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Property values can fall as well as rise, and you may not get back the amount originally invested. Property investments can be illiquid and may take time to sell. Where borrowing is used, your property may be repossessed if you do not keep up repayments on a mortgage or other loan secured against it.
