Enness was recently approached by a client seeking to refinance an existing loan for a property located in Portugal. The property held a valuation slightly exceeding 6,000,000 EUR, while the outstanding debt amounted to just under 1,000,000 EUR. Given the client's unconventional financial situation, our task involved identifying a lender willing to consider the retained income within the client's business.
Enness successfully identified a lender capable of refinancing the client's existing loan through an interest-only loan arrangement for seven years. Moreover, leveraging the substantial equity available in the asset, the bank extended an option for the client to access an additional 2,000,000 EUR through the loan potentially. Notably, the client would only incur interest charges on the additional 2,000,000 EUR upon utilisation, leaving them flexibility in managing the extra liquidity.
This arrangement provided our client with the opportunity to refinance their loan, cover associated transaction costs, and access additional funds for 7 years without incurring extra fees if the funds remained unused. This feature granted the client peace of mind, offering flexibility for potential future investment opportunities or addressing immediate liquidity needs without the necessity of undergoing another loan application process.
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