- Client: British National & Resident
- Property: Holiday villa in Ibiza
- Property Value: €6,600,000
- Loan Amount: €6,600,000
- LTV: 100%
- AUM: €2,300,000
- Term: 5 years, interest-only
Enness was approached by a British national and resident who was looking to purchase a holiday villa in Ibiza. The property, located in a prestigious residential area, was valued at €6.6 million, and the client wanted to maximise the amount they could borrow while retaining as much of their own capital as possible.
Securing a high-value Spanish mortgage as a UK resident can be challenging, particularly where a borrower is looking for a high level of leverage. Traditional lenders can take a relatively narrow view of an applicant’s income and circumstances, which can make it difficult to achieve the level of borrowing required on a prime property.
Given the size of the facility, Enness explored private banking options that could take a broader view of the client’s overall financial position. An international private bank was identified that was comfortable considering the transaction and the client’s wider wealth.
The lender was able to provide a €6.6 million mortgage, equivalent to 100% LTV, with the client placing €2.3 million in assets under management. The facility was structured on a five-year interest-only basis at a fixed rate of 1.9%.
This structure allowed the client to acquire the Ibiza property without contributing a conventional cash deposit, while establishing a wider private banking relationship through the assets placed under management. The solution was tailored around both the property purchase and the client’s broader financial position.
The case demonstrates how private banking can provide greater flexibility for high-net-worth borrowers seeking Spanish mortgages as UK residents. At this level of borrowing, the right lender may be able to consider assets, wealth and the wider banking relationship alongside the property itself.
Enness works with high-net-worth clients seeking finance for prime Spanish property, including holiday homes and second residences. Our international lender network allows us to explore bespoke Spanish mortgage solutions for non-residents and private banking structures where appropriate. To discuss your requirements, speak to a mortgage specialist.
Risk Warning:
A mortgage is secured against property. If you do not keep up with repayments, your property may be at risk of repossession. Borrowing at a high LTV can increase the potential impact of changes in property value, while interest-only borrowing means the capital balance remains outstanding unless it is repaid through another agreed repayment strategy.
Disclaimer:
This case study is for illustrative purposes only and does not constitute financial, legal or tax advice. Finance is subject to status, underwriting, affordability, asset suitability and lender criteria. Terms and availability will vary depending on individual circumstances.
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.
