Helping a UK National Purchase a Property in Spain Through a Company

• Client: UK National and Resident
• Property: Spanish holiday home valued at circa €1.3 million
• LTV: 75%
• Term: 25 years
• Repayment: Capital and interest

Enness was approached by a UK national and resident looking to purchase a property in Spain valued at approximately €1.3 million. The property was intended as a long-term investment, with the client planning to use it as a holiday home while ultimately passing it on to their children.

The client wanted to structure the purchase in a way that supported both their immediate requirements and their longer-term plans for the property. Given the international nature of the transaction, Enness reviewed the client’s circumstances and identified a suitable financing structure for the purchase.

Enness also connected the client with relevant specialists who could assist with the wider ownership structure and provide independent professional advice. This was particularly important given the client’s intention to retain the property as a long-term family asset.

We identified a mortgage provider able to offer terms that aligned with the client’s requirements, including a 75% loan-to-value facility over a 25-year term on a capital and interest repayment basis. The structure allowed the client to limit the amount of capital required upfront while spreading repayment of the mortgage over the agreed term.

As part of the financing structure, the client was also advised to retain the equivalent of six months’ interest with the bank to satisfy the lender’s requirements. This provided an additional liquidity buffer alongside the mortgage facility.

The resulting international mortgage enabled the client to proceed with the purchase of their Spanish property while maintaining a long-term approach to ownership. The structure provided access to a relatively high LTV while retaining the property as an asset that could ultimately form part of the client’s wider family wealth strategy.

This case demonstrates how specialist international mortgage structuring can help UK-based clients purchase property overseas while taking into account both their immediate financing requirements and longer-term objectives. Spanish property finance can be structured around factors including LTV, repayment method, term and the client’s wider financial circumstances, subject to lender criteria.

If you are considering purchasing property in Spain and require finance tailored to your circumstances, speak to a mortgage specialist to discuss your requirements.

Risk Warning:
Mortgages secured against property carry risks. Failure to meet repayment obligations could result in enforcement action against the secured property. Overseas property purchases may also involve additional legal, tax and currency considerations, and independent professional advice should be obtained where appropriate.

Disclaimer:
This case study is for illustrative purposes only and does not constitute financial, legal or tax advice. Enness does not provide tax advice. Finance is subject to status, underwriting, property assessment and lender criteria. Terms and availability will vary depending on individual circumstances and the proposed transaction.