- Loan Amount: €1 million+
- Loan to Value: Approximately 50%
- Property: Prime residential property in Portugal
- Client: Portuguese resident clients with non-standard income
Enness Global was approached by clients based in Portugal who wanted to release equity from a high-value residential property located in one of the country’s prime areas. The clients were seeking a facility of more than €1 million at approximately 50% loan-to-value. Their objective was to unlock liquidity from the property while maintaining flexibility in how the borrowing was structured and preserving the property within their long-term portfolio.
Although the underlying property was well suited to financing, the clients faced difficulties when approaching lenders directly due to the structure of their income. Rather than receiving income from conventional employment, the clients’ earnings were derived primarily from investment sources. This type of financial profile often creates challenges when engaging with local lenders who rely on standardised underwriting frameworks.
Many Portuguese banks place significant emphasis on local tax documentation and traditional income verification when assessing affordability. As the clients did not have Portuguese tax returns reflecting their investment-based income structure, lenders were unable to incorporate these earnings into their underwriting models. As a result, despite the strength of the property and the clients’ overall wealth position, the available lending options through local banks were significantly restricted.
Enness Global introduced the clients to a private bank capable of taking a broader view of their financial profile, with greater comfort around investment-based income streams. The lender also recognised the strength of the underlying property, located in a highly desirable area of Portugal, making it suitable security for an equity release structure.
A facility of more than €1 million at approximately 50% loan-to-value was arranged on an interest-only rolling term. This structure allowed the clients to access liquidity tied up in the property while maintaining flexibility and preserving their wider investment strategy.
By working with a lender able to evaluate asset strength and investment income rather than relying solely on traditional income documentation, Enness Global secured a solution that local lenders had been unable to provide. The case highlights the value of specialist lending relationships when structuring property finance for clients with non-standard income profiles.
Regulatory Information
Finance secured against property outside the UK may not be regulated by the Financial Conduct Authority. The regulatory position will depend on the borrower’s circumstances, the property location, and the structure of the facility.
Equity Release Risk Warning
Equity release reduces the value of your estate and may affect your tax position and entitlement to means-tested benefits. You should seek independent financial advice to understand the long-term implications.
Property Risk Warning
The value of property can fall as well as rise, and you may not get back the amount originally invested. Property may be illiquid and can take time to sell. Where borrowing is secured against property, failure to meet repayment obligations may result in repossession.
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.
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.
