- Client: International business owner with a complex cross-border residency and nationality profile
- Property: Monaco commercial unit valued at approximately €750,000
- Challenge: Required commercial refinancing while based in Monaco and holding an international financial profile
- Finance: €500,000 commercial mortgage refinance at 66.6% LTV, fixed at 2.1% for 15 years
Commercial property refinancing can become more complex where a borrower has an international profile, particularly when nationality, citizenship and residency span different jurisdictions. Enness was approached regarding the refinancing of a commercial property in Monaco, with the client looking to release capital for future business ventures.
The property was a commercial unit in Monaco valued at approximately €750,000. The client used the property for storage and wanted to refinance the existing borrowing, raising approximately €500,000 in the process.
The proposed facility represented approximately 66.6% loan to value (LTV). The international nature of the application created additional considerations for lenders, with the client holding citizenship in one European jurisdiction while being resident in Monaco and having an international background.
This combination of nationality, citizenship and residency meant that a lender needed to be comfortable with the additional due-diligence requirements associated with the application. The commercial nature of the property also meant that a specialist lender was required rather than a conventional residential mortgage provider.
Enness reviewed the client’s wider circumstances and approached a lender based in Monaco with experience of considering international borrowers and commercial property. The lender was prepared to assess the application on its individual merits and take a pragmatic approach to the client’s wider profile.
Following negotiations, the lender agreed to refinance the commercial property at 66.6% LTV, providing the required €500,000 facility against the €750,000 property.
The mortgage was arranged at a fixed rate of 2.1% for 15 years at the time. The facility provided the client with access to the capital required to support future business ventures while retaining ownership of the underlying commercial property.
The case demonstrates how Monaco mortgage finance can require specialist lender access where the borrower has a complex international profile. Residency, citizenship, nationality, property type and the intended use of the funds can all influence which lenders are able to consider an application.
For international borrowers seeking to refinance commercial property in Monaco, commercial property finance can provide a route to releasing capital, subject to lender criteria, valuation and affordability.
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, valuation, property suitability and lender criteria. Terms, rates, LTVs, fees and availability may vary depending on individual circumstances.
Risk Warning:
Property securing finance may be repossessed if repayments are not maintained. Property values can fall as well as rise. Commercial property finance may involve additional risks, including changes in property values, rental demand, market conditions and the ability to refinance or repay borrowing when required. Where assets, income or borrowing are denominated in different currencies, exchange-rate movements may also affect the cost of borrowing.
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Some case studies are made up of enquiries that have come into the business, not all business completes, and the posting of a case study does not represent a completed piece of business.
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.
