- Client: UK nationals with complex income structures
- Property Value: Above €5 million
- Loan Amount: Circa €2 million
Enness was approached by high-net-worth clients looking to refinance a property in the South of France after their existing private bank recalled their mortgage. With a significant asset base but a combination of employed and self-employed income across their financial history, the clients needed a lender that could take a broader view of their circumstances.
The clients also wanted their wider wealth and assets to be considered as part of the financing structure. Rather than assessing the mortgage in isolation, they were looking for a lender that could understand their overall financial position and provide a structure that worked alongside their existing assets.
Time was another important factor. The clients had been given a tight deadline to refinance away from their existing bank, meaning there was limited time to identify an alternative lender, present the financial information and secure terms.
Enness reviewed the clients’ income, assets and wider financial position before approaching lenders with an appetite for more complex high-net-worth cases. The key was finding a lender willing to consider the clients’ overall asset base rather than relying solely on their income history when assessing affordability.
A suitable lender was identified and terms were secured for a circa €2 million refinancing facility against the property, which was valued at more than €5 million. The lender was comfortable with the clients’ complex income structure and broader financial position, while also providing a competitive interest rate.
The resulting structure gave the clients greater flexibility in managing their borrowing alongside their wider assets and allowed them to move away from their existing private banking arrangement within the required timeframe.
This case highlights the importance of taking a holistic approach when arranging finance for high-net-worth clients. Where income has been generated through a combination of employment and self-employment, or wealth is held across a wider asset base, a conventional affordability assessment may not fully reflect the client’s financial position.
For clients with more complex circumstances, complex mortgage solutions can provide an alternative to standard lending. Those with substantial assets may also benefit from exploring private bank mortgage options, particularly where the wider relationship and asset base can form part of the lender’s assessment.
If you are looking to refinance a high-value European property and have a complex income or asset structure, remortgage solutions may be worth exploring. Speak to a mortgage specialist to discuss your requirements.
Disclaimer:
This case study is for illustrative purposes only and does not constitute financial, legal, tax or investment advice. Finance is subject to status, affordability, valuation, underwriting and lender criteria. Terms and availability will vary depending on individual circumstances and the property.
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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.
