- Client: British National & Resident
- Property: Villa in Ibiza
- Property value: €5,200,000
- Loan amount: €4,000,000
- LTV: 77%
- AUM: €1,500,000
- Rate: 1.6% variable
- Term: 7 years, interest-only
Enness was approached by a British national and resident looking to purchase a luxury villa in Ibiza. The property was valued at €5.2 million and the client wanted to borrow €4 million, requiring a relatively high 77% LTV.
Securing this level of borrowing can be more challenging for UK residents purchasing property overseas, particularly where the borrower is looking for a flexible structure rather than a standard residential mortgage. Spanish lenders can take a more traditional approach to affordability, with income, liquidity and the overall strength of the borrower’s financial position all playing an important role.
In this case, the client wanted an interest-only structure over seven years, allowing them to retain greater flexibility while acquiring the property. The proposed borrowing also required a lender comfortable with the higher LTV and the client’s wider financial circumstances.
Enness approached international lenders with the appetite to consider high-value Spanish property and a more bespoke approach to underwriting. The client’s assets under management were an important part of the overall structure and helped support the proposed facility.
We secured the €4 million facility at 77% LTV on an interest-only basis over seven years, with a competitive variable rate of 1.6%. The solution gave the client the level of borrowing and flexibility required to proceed with the Ibiza purchase.
This case demonstrates how the right lender can make a significant difference when financing high-value property in Spain as a UK resident. Rather than relying solely on standard income-based lending criteria, a bespoke approach can allow the lender to consider the borrower’s wider assets, liquidity and overall financial position, subject to its criteria.
Enness specialises in arranging Spanish mortgages for UK residents, including financing for high-value holiday homes and investment properties. If you are considering purchasing property in Spain, our team can explore international and specialist lending options suited to your circumstances.
Risk Warning:
Mortgages secured against property carry risk. If you do not keep up with repayments, you could lose the property used as security. Interest-only borrowing requires a suitable repayment strategy for the capital outstanding at the end of the term. Variable-rate borrowing also means payments may increase if the applicable interest rate rises. Property values can fall as well as rise.
Disclaimer:
This case study is for illustrative purposes only and does not constitute financial, legal or tax advice. Finance is subject to status, affordability, underwriting and lender criteria. Terms and availability will vary depending on individual circumstances.
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.
