€6.6 Million Cannes Property Refinance for International Client Based in Monaco

• Client: International high-net-worth individual based in Monaco
• Property: Cannes villa valued at approximately €6.6 million
• Challenge: Required a substantial refinance at short notice to release equity and replace existing borrowing
• Finance: €4.15 million refinance at 62% LTV, with £850,000 placed as assets under management

Refinancing a high-value property in the south of France can become more challenging where a borrower is resident overseas and requires a substantial amount of equity to be released. Enness was approached by an international high-net-worth client based in Monaco who was looking to refinance a property in Cannes.

The property was a luxury villa valued at approximately €6.6 million. The client wanted to refinance the existing borrowing at around 60% loan to value (LTV), with the additional capital being used to address outstanding debt.

The timing of the refinance was an important consideration. The client had already approached several lenders, but either the applications had been declined or the proposed lenders were unable to complete within the required timeframe. An alternative lender therefore needed to be identified quickly.

The international nature of the application also meant that access to a lender familiar with overseas borrowers and high-value French property was important. Rather than approaching the transaction as a conventional residential refinance, Enness considered the client’s wider financial position and the value of the underlying asset.

The London team approached a Monaco-based bank with which Enness had an established relationship. Following discussions with the lender, an assets-under-management structure was agreed as part of the overall financing arrangement.

The client placed £850,000 of assets under management with the bank. This provided the lender with additional security and supported its assessment of the proposed refinance.

Following negotiations, the lender agreed to provide a €4.15 million refinance facility against the €6.6 million Cannes property. This represented approximately 62% LTV, exceeding the client’s original target of around 60%.

The facility was arranged at a rate of 1.45% over five-year Euribor at the time. The resulting structure provided the required equity release while allowing the client to refinance the property through a lender comfortable with the international nature and scale of the transaction.

The case demonstrates how French mortgage finance can require specialist lender access where an overseas borrower is refinancing a high-value property. Lender appetite, residency, property value, required LTV and the borrower’s wider financial position can all influence the available options.

For international clients looking to refinance property on the French Riviera, specialist mortgage finance can help identify lenders able to consider larger and more complex transactions, subject to individual circumstances and lender criteria.

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:
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. Equity release increases the borrowing secured against a property and may increase the overall cost of borrowing. Assets placed under management can fall in value and returns are not guaranteed. Where borrowing or assets are denominated in different currencies, exchange-rate movements may also affect their value or the cost of borrowing.