Liquidity
Liquidity is particularly important when it comes to the Marbella property market. Marbella draws huge interest, and there is a lot of competition for the best homes. New and top-end properties are always in-demand, and these homes are bought and sold very quickly. When you find a property you like, speed is of the essence: few sellers will need to wait around for you to approach lenders and the most liquid buyers usually win the property. You’ll either want to have in principle offers before you start your property search, or you need to be able to get an offer from a lender in 1-2 days. Enness can secure offers for you in just 24 hours.
Spanish Mortgages
The most competitive mortgages for Spanish property do not necessarily come from Spanish lenders. Still scarred from the financial crash of 2008, domestic banks have a low risk tolerance. As a result, even if you are a HNWI, you will struggle to get more than a package deal that lets you borrow 50-60% of your property’s value from a Spanish bank. Enness will be able to get you a mortgage that finances around 70% or more of your property.
It’s also worth noting that Spanish lenders will focus on your credit score and income before they will lend to you. They also have a low appetite to lend to borrowers with no Spanish assets or if you have significant international assets but little income.
Enness generally approach international, alternative lenders and private banks for any high-value mortgages in Spain. These lenders will consider your global situation and overall wealth, and Enness will be able to utilise your complete portfolio of worldwide assets to reduce headline mortgage costs.
Structuring
You should ensure that your mortgage is tax-efficient, cost-effective and has been structured considering your international interests, wealth, residency and citizenship. Enness’ brokers appreciate the intricacies of the Spanish tax system and will consider the legal and regulatory factors alongside your advisors and other specialists. You’ll enjoy competitive mortgage rates and property finance that considers taxation, mitigates possible exchange rate risks and is the most advantageous legal structure for you.
Buying Property In Spain
Few restrictions limit foreign property investors buying Spanish property, including non-EU citizens. Brexit has also had little impact: British citizens can still buy property in Spain easily and without unnecessary red tape. If you wish to explore permanent residency, Spain also offers Golden Visas for individuals who purchase a home worth more than EUR 500,000. Enness will be able to help you secure property finance in Spain, regardless of your nationality or residence.
Headline Terms
Capital Repayment:
- LTV – 100%
- AUM – 30%
- Rate – 1.7% (fixed for 15 years)
- Term – 15 years
- Bank fee – 1%
Interest Only:
- LTV – 100%
- AUM – 40%
- Rate – 1.65% (fixed for 5 years)
- Term – 5 years
- Bank fee – 1%
Working with Enness, you will be able to enjoy a tailored and advantageous mortgage, no matter the value of your Spanish property.
