I was recently able to secure terms for a client hoping to require a mortgage for a ski chalet, which is a very popular request from Enness International clients. My client was born in Germany but was half British, and although resident in the UK, she was classed as a non-domiciled resident.
My client was looking to secure a mortgage for a ski chalet in Courchevel, valued at €5million. Courchevel is one of the most desirable ski locations in France, offering world-class amenities in addition to fantastic skiing. As such, this is a very illiquid area—property does not change hands on a very regular basis, because investors are so keen to hold onto their assets here. The chalet my client had in mind was valued at €5million—and although she had already secured terms, she approached Enness International because she wondered if we could help to arrange a more favourable deal.
As mentioned, my client had already secured terms for the purchase individually, but this lender wanted her to place 50% of the loan size as assets under management (AUM), which was more than she ideally wanted to commit to.
She, therefore, approached me to see if I could secure her a loan facility more suited to her requirements. Fortunately, I was able to help, using the extensive experience I have of securing finance for clients purchasing and developing ski chalets. We managed to secured terms which matched the offer she had already received, but at a slightly lower interest rate and with a smaller percentage of AUM.
We have a very strong relationship with this bank. Towards the end of last year, we completed a significant transaction with them for a client with a similar profile. This put us in a favourable position for securing terms for this case because the bank felt comfortable working with us and stepping outside of their normal boundaries for this client.
If you are looking for a mortgage for a ski chalet—or indeed, any form of property finance in Europe—a good brokerage with strong lender relationships could be invaluable in securing you the most favourable terms.