Two South African nationals who had been resident in France for several years approached Enness Global seeking to refinance an existing mortgage on their main residence while also releasing additional equity to fund extensive renovation works. The clients wished to move away from their existing lender and required a structure that could accommodate their international income and wider property holdings.
The clients operated a successful business in South Africa and owned a substantial property portfolio in Southern France valued at more than €10 million. They required approximately €2 million to refinance their existing borrowing, a further €1 million towards renovation costs and additional capital supported by assets under management (AUM).
The transaction presented several challenges. The clients were unable to provide an up-to-date South African tax return, meaning a lender needed to be comfortable assessing their financial position using alternative documentation, including bank statements and confirmation from their accountant.
The clients also faced a significant AUM requirement with their existing lender. They had been asked to introduce approximately €1 million of fresh AUM, but were only prepared to commit around €150,000. The remaining capital therefore needed to be incorporated into the lending structure rather than being met through additional assets under management.
Enness Global approached a specialist Monegasque lender experienced in international private banking and presented the clients’ wider financial position, including their South African business interests and French property portfolio. The lender was comfortable considering the accountant’s confirmation and bank statements in place of the latest South African tax return, subject to its due diligence and underwriting requirements.
The lender was also prepared to work with the clients’ proposed €150,000 AUM contribution rather than requiring the full €1 million originally requested by their existing provider. The remaining capital could therefore be incorporated into the overall borrowing structure, allowing the clients to achieve their required funding without committing additional assets beyond their preferred level.
The facility was structured over a five-year term on an interest-only basis, with no early repayment charge. This was particularly important as the clients anticipated selling one of their properties in the future, providing a potential source of repayment for the facility.
Enness secured approximately €3.85 million of funding to refinance the existing mortgage and support the planned renovation works, subject to lender criteria. The structure provided the clients with access to the required capital while accommodating their international financial circumstances, limited AUM contribution and intended future exit strategy.
This case demonstrates the importance of specialist lender selection when international borrowers have complex income documentation, significant property holdings and specific AUM requirements. By presenting the clients’ wider financial position to an appropriate private banking lender, Enness was able to identify a structure that addressed the key challenges while providing flexibility around future repayment.
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, asset suitability and lender criteria. Terms, rates 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. Property values can fall as well as rise.
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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.
