A client was introduced to Enness through a trusted intermediary and sought to release equity from a holiday property in a highly desirable area of Marbella. The client was a senior professional within a management consultancy and required funding against the property through a Gibraltar-based SPV.
The property was a four-bedroom villa with a swimming pool and had an estimated value of approximately €600,000. The client sought to raise approximately €400,000, representing around 66% loan-to-value (LTV), to provide additional liquidity.
The transaction presented several considerations. Borrowing through an overseas SPV can reduce the number of lenders willing to consider a transaction, while property valuations in Spain can also require careful management to ensure that the lender is comfortable with the underlying security.
Enness arranged an independent valuation of the Marbella property through a local valuation partner. The valuation provided the lender with an independent assessment of the property’s market value and helped keep the financing process moving efficiently.
The Gibraltar-based SPV was also reviewed as part of the lender’s due diligence. Following assessment of the ownership and borrowing structure, a specialist lender was able to consider the proposed facility.
OUR SOLUTION
Enness secured a bridging finance facility of approximately €400,000 against the Marbella property, subject to the lender’s agreed terms and security requirements. The structure enabled the client to release equity without selling the underlying property.
The transaction progressed within a relatively short timeframe, with the facility arranged over approximately three weeks from initial enquiry through to completion. This provided the client with access to the required capital while retaining ownership of the holiday property.
This case demonstrates how specialist bridging finance can provide an alternative source of short-term liquidity where an international property, overseas borrowing vehicle or non-standard ownership structure may limit access to mainstream lenders. Careful lender selection, independent valuation and clear presentation of the underlying transaction can be particularly important in cross-border property finance.
Important:
Bridging finance is a short-term funding solution and requires a clearly defined repayment or exit strategy, such as refinancing or sale of the secured asset. Delays to the planned exit strategy may increase costs or affect repayment options.
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, property suitability, affordability and lender criteria. Terms, rates, LTVs and availability may vary depending on individual circumstances.
Risk Warning:
Your property may be repossessed if you do not keep up repayments on your mortgage or other borrowing secured against it.
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.
