My client owned a large and luxurious villa in Cannes, a highly desirable location in the French Riviera. He hoped to refinance his Cannes property in order to raise capital to carry out home improvements. The property was valued at €3.8million, and would be worth even more once the refurbishments were complete.
Cannes property is a valuable asset, as Cannes is a highly desirable holiday and lifestyle destination all year round. Cannes is naturally a particularly popular destination when renowned events such as the Cannes film festival are taking place. My client rented his property out as a holiday let, as the 8-bed property was ideal for large groups wishing to enjoy the beauty of the location.
The problem on this case came from the fact my client’s income was relatively low, in comparison to the loan size he was seeking. Many lenders would require at least half of the borrowed amount as assets under management (AUM). At the current moment in time, my client’s wealth was tied up in pensions, so he was unable to place a large amount of cash with a lender.
OUR SOLUTION
I knew I would need to think creatively to find a solution for this case. I was able to take my client to a lender who was happy to proceed with lending him a 100% loan to value (LTV). As my client only required a loan of €1.4million, the rest of the loan facility could be placed as AUM. I secured him a rate of 1.3% fixed for 3 years, enabling him to proceed with the renovations.
If you have a property you would like to refinance but have background issues which you feel could make this difficult, it is worthwhile speaking to a broker such as myself for guidance on how you can proceed. I have found solutions for a variety of challenging scenarios and would be very happy to assist you with refinancing your property
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