bridging loan for an expat who wanted to completely develop an old townhouse into a luxury residential property in San Lorenzo, Mallorca. The house in its original state was worth €1.2million, a four-storey building with a beautiful sun terrace. Rather than opt for demolition, my client wished to reconstruct the whole townhouse by installing luxury features such as an eight-person steam room completely tiled in mosaics, as well as a rooftop swimming pool. These projected high specification renovations meant the property’s gross development value (GDV) was set at a total of €4.5million. My client needed to borrow a total of €600,000 from a lender to be able to complete the development on time and meet the GDV. The bridging loan needed to be sourced quickly, which made things difficult as getting a speedy valuation in Mallorca was extremely challenging. This was also my client’s first time developing a property abroad, and so he was keen to find an experienced valuation expert with local knowledge to help him with obtaining the best and most reliable builders and contractors on the Mallorcan market. Although this proved troublesome, I managed to use my Spanish network to source a reputable professional valuer with a strong understanding of the local Lorenzo area who could ensure the renovation was completed on time and would meet the GDV.


I managed to secure a fantastic loan for my client with a low cost, highly efficient lender who specialise in lending smaller loans at a fast pace. For a borrowing of €600,000, I negotiated a rate of 0.9% which is excellent in the world of international bridging and commercial development. This loan would be released in two tranches of €300,000 to even out the cost over a twelve-month period; my client’s funds would be released after two separate valuations to ensure the build was on time, on budget and would eventually result in the correct GDV.]]>