Client Overview:
- Portfolio Value: Circa €17M
- Loan Amount: Approximately €10M
- AUM: Circa €3M
A high-net-worth client, who owns a portfolio of luxury properties in Spain, approached Enness to explore options to facilitate raising capital from their existing property portfolio to invest in new real estate opportunities.
If loan amounts reach €10m and above when refinancing in Spain & The Balearics, LTV is often capped at 50-60%. Naturally, the pricing of the deal was a consideration for the client, but LTV was a clear priority to enable onward investment plans. This bank recognised the quality of the borrower and assets, exceeding market standards to provide an attractive LTV.
Furthermore, the client identified an opportunity to enhance the asset valuation through short-term value-add works following the initial drawdown. The lender agreed to top up the facility based on the improved valuation, without requiring a refinance. This allows the client to release additional equity from the assets if needed in the future.
European private bank mortgages are predicated on the client bringing assets under management. The loan was secured with a Circa €3M in AUM. This is on the lower end of an expected loan-AUM ratio, satisfying both the private bank’s requirement for Day 1 collateral and the client’s need to retain liquidity. Moreover, the loan was structured with a Euribor-based interest rate, which has already decreased by 10 basis points since the loan was completed.
Regarding our international offering, Enness specialises in personalised private banking mortgages and has access to this market in prime areas of Europe. We have strong lender relationships across Europe that allow us to ensure that we secure the best solution for our clients which is both optimal and bespoke. Contact us today to discover how we can assist in helping you achieve your financial goals.
To find out more about international mortgages, click here.
To find out more about equity release, click here.
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