Refinance and Capital Raise for Ex-Professional Sportsman on €2.5M European Property

• Client: Former professional sportsman with UK and European property holdings
• Property: European holiday villa valued at approximately €2.5 million
• Challenge: Existing finance was approaching expiry and local lender appetite made refinancing and capital raising difficult
• Finance: £3.4 million facility using the client’s wider property portfolio, with additional liquidity available through a £300,000 overdraft facility

A trusted introducer recently referred a client to me who needed to refinance a European holiday property while also raising additional capital. The client was a former professional sportsman with property interests in the UK and across Europe, and the existing loan on his holiday home was approaching the end of its term.

Since retiring from professional sport, the client had built a new career within the media industry. Alongside his employment, he continued to generate income through regular television appearances and held a substantial property portfolio. This provided a strong overall financial profile, although his income was more diverse than that of a conventional employed borrower.

The property requiring refinancing was a European villa valued at approximately €2.5 million. The client needed to refinance the existing borrowing and raise additional capital, with a total facility of £3.4 million required. The timing added further pressure, as the existing loan was approaching maturity and there was limited appetite among lenders in the relevant European market.

Rather than focusing solely on the European property, I reviewed the client's wider property portfolio to identify another way of structuring the borrowing. One of his UK properties retained significant equity, which could potentially be used to support the additional capital required.

This allowed me to approach the requirement as a broader financing proposition rather than relying entirely on the lending market in the country where the European property was located.

I approached a private bank with which I had an established relationship and presented the client's overall financial position, including his property assets and multiple sources of income. The lender was comfortable taking a broader, case-by-case view of the application and was prepared to consider the client's wider wealth alongside his current earnings.

The lender was also able to rely on a letter from a local estate agent confirming the expected resale value of the relevant property, avoiding the need for a more expensive valuation process in this instance.

I secured a £3.4 million facility on a three-year fixed rate of 2.7% at the time, together with a £300,000 overdraft facility to provide additional liquidity if required.

The case demonstrates how reviewing a client's entire property portfolio can sometimes uncover financing options that would not be apparent when considering one asset in isolation. For clients with substantial property holdings and complex income, a private bank mortgage can provide a more tailored approach, subject to the lender’s criteria and the overall strength of the application.

It also highlights the importance of specialist property portfolio finance expertise when refinancing international assets and raising additional capital against a wider portfolio.

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. Where borrowing or property assets are held in different currencies, exchange-rate movements may also affect the sterling value of the borrowing or associated payments.