- Client: British national and resident
- Property: Luxury chalet in Austria
- Property value: €20M
- Loan amount: €11M
- LTV: 55%
- Rate: 1.2% fixed for 5 years
Austria has long been a popular destination for buyers seeking a luxury second home, with its combination of alpine scenery, world-class skiing and year-round lifestyle appeal. For high-net-worth buyers, however, financing a property at the upper end of the market can require a more tailored approach than a conventional mortgage.
In this case, a British national and resident approached Enness to finance the purchase of a luxury chalet in Austria valued at €20M. The client required a substantial mortgage while looking for competitive long-term terms, making access to specialist international lenders particularly important.
Financing a high-value property overseas can involve additional considerations around the borrower’s nationality, the location and type of security, local regulations and the lender’s appetite for international property. At this level, the right financing structure often needs to be negotiated around the individual circumstances rather than selected from a standard range of products.
Enness worked with four law firms and a Swiss private bank to structure the transaction. This resulted in an €11M mortgage, representing 55% LTV against the property, with a 1.2% fixed rate for five years.
The resulting facility gave the client the leverage required to complete the purchase while securing a long-term fixed rate suited to the financing strategy. The transaction also demonstrates the value of coordinating the legal and lending aspects of an international property purchase from the outset.
For buyers considering property in Austria, private banks can offer greater flexibility than conventional lenders, particularly where the property value and borrowing requirement are substantial. Depending on the borrower’s circumstances, assets under management may also form part of the wider relationship with the lender.
Enness specialises in arranging bespoke international property finance for high-net-worth clients. Each application is assessed individually, with available terms dependent on the borrower, property, lender criteria and wider financial circumstances.
Disclaimer:
This case study is for illustrative purposes only and does not constitute financial, legal, tax or investment advice. Finance is subject to status, valuation, due diligence and lender criteria. The terms described relate to a historical transaction and are not indicative of current or future pricing.
Risk Warning:
Taking out a mortgage involves financial risk. If you do not keep up repayments, your property may be at risk of repossession. Borrowers should consider the affordability of the loan, changes in interest rates and any applicable currency or international property risks before proceeding.
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.
