Swiss Bridging Loan
26th October 2022
Key Figures:
- Client: French National & Swiss Resident
- Property type: Investment Property
- Property Value: CHF 4,000,000
- Loan Amount: CHF 2,200,000
- LTV: 70%
- Interest Rate: 11% Variable Rate, 1 Year Term
Bridging finance is one of the most flexible types of short-term finance available to borrowers. While it originated in the UK, today, bridging loans are increasingly used across Europe and the rest of the world. HNWI, in particular, use bridging finance more and more as they look to benefit from the advantages offered by this type of finance.
In this case, we were approached by a French national and Swiss resident who owned multiple properties in Switzerland and Italy. The client was in the process of selling one of their Swiss properties but wanted to create liquidity to finance an additional property purchase in Vaud. They didn’t want a mortgage as they planned to use the proceeds of the property they were selling to finance the new purchase. A bridging loan was the ideal solution as it provided the capital the client needed to buy the additional property before the home they had put on the market had sold.
The property the client was looking to purchase was on the market for CHF 1.99 million. We approached a specialist bridging lender comfortable dealing with the outlined circumstances, and we negotiated an advantageous deal for the client which included surplus funds. We suggested using an existing property in the client’s portfolio as security for the loan (rather than the new property they were purchasing in Vaud) since it had a higher value and allowed the client to borrow more. We negotiated an 11% variable rate for a one-year term.
If you are considering buying Swiss property and want to learn more about how Enness can help you, get in touch. The team will be delighted to talk you through your options and answer any questions you have.
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