An internationally based client approached Enness seeking to restructure finance across two properties in France and Monaco. The client wanted to release equity from the French residence, refinance the existing borrowing on the Monegasque property and reduce the associated Assets Under Management (AUM) requirements, while also securing more suitable terms.
The French property was valued at approximately €5 million, while the Monegasque residence was worth around €8.5 million. Both properties had recently undergone refurbishment. The application required a lender capable of considering assets across both jurisdictions and accommodating the fact that the properties were held in the client’s spouse’s name.
The household’s income was primarily generated through seasonal rental activity, while the client was retired and had limited readily available liquidity. This reduced the number of lenders able to consider the application, particularly where additional fresh assets would normally be required as part of the banking relationship.
OUR SOLUTION
Enness identified a private bank with experience in cross-border property finance and wealth management. The lender was able to assess the client’s property assets and wider financial position, allowing the proposed financing to be structured around the existing equity rather than requiring a significant injection of new capital.
For the French property, Enness arranged approximately €3 million of borrowing at 50% loan-to-value, with an associated AUM requirement. A further facility of approximately €4.5 million was arranged against the Monegasque residence, also incorporating an AUM relationship.
Both facilities were structured over renewable five-year periods, providing flexibility around the client’s longer-term plans. The structure also allowed for potential adjustments to the pledged assets as property values changed, subject to lender approval and the terms of the facilities.
The resulting arrangements enabled the client to access additional capital from the French property while refinancing the Monegasque borrowing and maintaining a coordinated private banking relationship across both jurisdictions.
This case demonstrates how specialist international mortgage structuring can help borrowers with property, wealth and income spread across multiple jurisdictions. Where conventional lending criteria do not fully reflect a client’s circumstances, private banking solutions can provide greater flexibility around property finance and associated wealth structures.
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 and lender criteria. Terms, rates, LTVs and availability may vary depending on individual circumstances.
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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.
