Enness were recently approached by a client looking to purchase a property in the Balearic Islands valued above €1 million.
The client was looking to get the maximum LTV on the purchase. The intention was to buy the property and use it as a holiday home, keeping it for a long time. The client also wanted to pass the property on to their children one day.
Although they had their own company, their income was unstable. The client was a property developer, and subsequently, their income changed year on year.
Despite this, Enness were able to secure the following terms:
- 70% LTV, loan of €770,000
- 30-year capital repayment loan, with a 10-year fixed rate (the client would then refix their rate in 10 years)
- Monthly payment of circa €4k
- There was no need to take up any life insurance, just the traditional property insurance.
- The client brought a company structure that would reduce the IHT once they pass the property onto their children.
The above terms are applicable for any loan amount from €350k and higher. The duration of the loan can vary between 10 to 30 years, depending on the client’s age and clients characteristics. What was important for the bank was that the loan would need to be repaid before the client turned 75 years old.
The client also envisaged undertaking some renovation work in 6 months, with a budget of circa €150k, which the bank was able to finance with the same LTV and terms of the mortgage.
These loans do not require AUM and can be done all over Spain.
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