Many people compare the Ibiza property market to that of London – luxury property is aplenty. There is lots of real estate to choose from, even at the very top of the market. Unsurprisingly, it's estimated that more than half a million Britons own Spanish property.
While Brexit has made living full-time in Spain more challenging for Britons not already living in the country pre-Brexit, there are almost no restrictions for Britons who want to buy a Spanish holiday property or second home. Spain is heavily reliant on tourism. The significant number of Britons visiting the country each year means it makes no sense to place substantial restrictions on property ownership for UK residents, regardless of Brexit.
When it comes to Spanish mortgages for UK residents, not all Spanish banks and lenders will offer the most flexible or competitive mortgages to you. Spanish lenders will most likely view you in a very "black and white" manner assessing your income first and foremost and then evaluating how "risky" your profile is according to their internal guidelines. If you are retired, an entrepreneur, asset rich but have little income or your wealth is tied up in property or other illiquid assets, these are likely to make lending a challenge for many Spanish lenders who prefer borrowers with lots of liquidity and a steady income.
In this case, we assisted a British national and resident who was looking to purchase a luxurious villa in Ibiza worth €5.2 million. We were able to secure the €4 million borrowing required on an interest-only basis over a seven-year term. The bespoke facility was agreed at an excellent variable rate of 1.6%, with the client placing €1.6 million AUM (assets under management).
If you are a UK resident looking for a mortgage for a Spanish property, Enness will be able to connect you with international and alternative lenders who will be able to offer competitive and flexible mortgage financing. We have access to lenders who will consider more than just your income and look at the other elements of your background to offer you a mortgage for Spanish property as a UK resident.
To discuss your scenario, get in touch today.