€1.7 Million Cannes Buy-to-Let Property Purchases with No Assets Under Management

• Client: Experienced property developer with an established track record on the French Riviera
• Properties: Two Cannes buy-to-let properties valued at approximately €1.1 million and €600,000
• Challenge: Required finance for two simultaneous acquisitions without placing assets under management
• Finance: 1.8% on the €1.1 million property and 1.6% on the €600,000 property, with no AUM requirement

Financing multiple investment properties simultaneously can present additional challenges, particularly where a borrower wants to avoid placing assets under management with the lending bank. Enness was approached by an experienced property developer looking to acquire two buy-to-let properties in Cannes, with a combined value of approximately €1.7 million.

The first property was valued at approximately €1.1 million, while the second was valued at approximately €600,000. Both properties were intended to be held as buy-to-let investments and used to generate rental income.

The client was looking to finance both purchases at the same time and was particularly interested in a mortgage structure that did not require assets under management (AUM). This was important because many private banking arrangements for French property involve an AUM requirement, which can require borrowers to commit significant additional capital alongside the property purchase. :contentReference[oaicite:1]{index=1}

There was also an existing banking relationship to consider. The client’s usual bank had declined to provide finance for the two new acquisitions, despite the client already holding multiple accounts with the institution. Enness therefore needed to identify an alternative lender that was comfortable financing both properties and could accommodate the client’s preference for a structure without AUM.

The London team approached a Monaco-based bank with experience of international property finance. The lender was prepared to assess the two acquisitions separately and, importantly, offered a structure that did not require the client to place assets under management.

Following negotiations, Enness secured a rate of 1.8% on the €1.1 million property and 1.6% on the €600,000 property at the time. Both facilities were arranged over 20 years on a capital repayment basis, with no AUM requirement.

The result provided the client with financing for both Cannes acquisitions while avoiding the need to establish a wider investment relationship with the lender. This was particularly valuable given that AUM requirements can make smaller French property purchases less efficient to finance through traditional private banking structures.

The case demonstrates how French mortgage finance can be structured around an investor’s wider requirements, particularly where multiple properties are being acquired simultaneously. Lender appetite, property values, investment purpose and the borrower’s willingness to place assets under management can all influence the available options.

For investors looking to acquire property on the French Riviera, specialist mortgage finance can help identify lenders offering alternatives to traditional AUM-based private banking structures, 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, property suitability, valuation 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. Buy-to-let investments involve risks including changes in property values, rental demand, void periods and associated costs. Rental income is not guaranteed and investors should ensure they have an appropriate strategy for meeting mortgage repayments and other property-related costs.