My client was a private investor in his late fifties who was based in Scotland and owned a high-value rental property in Monaco. Having heard about Enness’ international network and relationships with lenders across offshore jurisdictions, he approached us to explore refinancing options.
The property was valued at approximately €5.3 million, with around €2.7 million of existing borrowing secured against it. The property was held through a British Virgin Islands (BVI) company and overlooked Monaco’s main port, making it a valuable investment asset.
The client’s existing lender was looking to exit the relationship, meaning he needed to find an alternative source of finance within a relatively short timeframe. However, the structure of the ownership and the property’s financing history created several challenges.
Although the property had increased significantly in value, local lenders were generally reluctant to base lending decisions solely on property price appreciation. They were more comfortable where borrowers had demonstrated capital investment into the asset.
The offshore ownership structure also reduced the number of suitable lenders. Many Monegasque lenders prefer more transparent ownership arrangements and may require detailed financial information to establish the source of funds and demonstrate the underlying cash flow of a rental property.
OUR SOLUTION
Given the urgency and complexity of the situation, I explored specialist international lending options rather than relying solely on the local banking market. Enness’ experience arranging international bridging finance meant I could approach a lender familiar with Monaco property and more complex offshore ownership structures.
The lender had an established presence in Monaco and was comfortable considering the property despite it being held through an offshore structure. This provided an alternative to the local lenders who were unable to accommodate the proposed arrangement.
The lender agreed to provide a €3 million bridging facility, with the associated arrangement and legal costs incorporated into the structure. The terms were secured within the timeframe required by the client, providing a route to refinance the existing borrowing while a longer-term solution could be considered.
The case demonstrates the value of specialist international mortgage expertise when a high-value overseas property involves an offshore ownership structure and an urgent refinancing requirement.
For clients facing a time-sensitive refinancing situation, bridging finance can provide a short-term funding option while a longer-term financing strategy is established, subject to lender criteria and the proposed exit.
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.
Risk Warning:
Property and other assets used as security may be repossessed if repayments are not maintained. Property values can fall as well as rise. Bridging finance is typically short-term borrowing and should only be entered into where a suitable repayment strategy is available.
Information contained in our case studies is for market and illustrative purposes only. In some cases, these may be made up of multiple cases and are for illustrative purposes only.
Some case studies are made up of enquiries that have come into the business, not all business completes, and the posting of a case study does not represent a completed piece of business.
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.
