An international client was referred to Enness Global seeking finance to acquire two luxury chalet apartments in the French Alps. The properties had a combined purchase price of approximately €9 million, with the client seeking around €5 million of mortgage finance.
The client had an established international financial profile, including significant investment assets held across stocks and bonds. They wished to use their existing wealth as part of the overall financing structure while retaining liquidity and avoiding the need to liquidate investments unnecessarily.
The principal challenge was the composition of the client’s assets under management. A significant proportion was held in marketable securities rather than cash, which can limit the number of private banks willing to recognise those assets when assessing a financing requirement. The transaction therefore required a lender with experience in international clients and more flexible approaches to investment portfolios.
Enness approached specialist private banking lenders with dedicated international lending capabilities. Both lenders were able to consider the client’s wider investment portfolio as part of the overall assessment, subject to their respective due diligence, asset eligibility and lending criteria.
Two indicative structures were subsequently secured for consideration. The first provided approximately €5 million of interest-only finance over a seven-year term, with the proposed structure incorporating approximately €2.5 million of assets under management, subject to the lender’s applicable credit weighting.
The second lender proposed approximately €5 million of interest-only finance over a five-year term, again incorporating approximately €2.5 million of qualifying assets under management within the wider banking relationship.
The competing proposals gave the client greater flexibility when considering the most appropriate financing structure for the acquisition. Importantly, the solutions demonstrated that an international investment portfolio does not necessarily need to be converted entirely into cash before it can form part of a private banking financing arrangement, although the treatment of assets will depend on the individual lender and circumstances.
This case demonstrates the value of specialist lender selection when financing high-value international property purchases involving complex wealth structures. By presenting the client’s overall financial position and approaching private banks with relevant international lending expertise, Enness was able to identify potential solutions that accommodated a substantial investment portfolio alongside the proposed property acquisition.
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, asset suitability, jurisdiction, lender criteria and prevailing market conditions. 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. Investments can fall in value as well as rise, and the value of assets used within a lending structure may affect the terms or availability of finance.
Enness does not give advice on Securities Backed Lending or investments; lender introductions are unregulated.
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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.
