43% LTV on €14million Tuscan villa for client to raise renovation funds

Key figures:

  • €14million property
  • €2.5million placed as assets under management (AUM) which was self-generated from the bank.
  • 43% loan to value (LTV)
  • 1.4% variable for 2 years

The client:

The client in question was a very successful business owner and was based mostly in London. He has used our service in the past to finance the purchase of a London property. He was introduced to Enness by a Swiss bank who recommended us as they do not lend is this region.

 

The property:

The property was a sumptuous estate in Tuscany, Italy, valued at €14million. The estate comprised a vineyard and golf course within its grounds and was in need of extensive renovation works.

 

What were they looking for?

He required a release of cash quickly to be able to cover the costs of the renovation on both the Italian and London properties. He was looking for around 50% of the property’s value to be released.

 

Why was it difficult?

Due to the complexity of his case, explained by the lack of offering in Italy for non-residents, this client’s application had been declined by four banks before we found a lender that would consider his circumstances. The client in this instance worked for multiple businesses operating internationally, and therefore received multiple incomes across a variety of different currencies.

His desired loan to value of 50% is high for this particular location where estates are magnificent but not very liquid, and would be difficult to find a lender who would be comfortable with this, despite the client’s clear affordability.

Furthermore, the system in Italy is typically very challenging, especially for non-residents. We faced multiple delays due to the Italian legal process as the client was a British national and resident, which demanded lengthy paperwork in Italy.

 

What was the process?

Enness has connections with a private European bank, whose CEO and top-level manager we have a close relationship with. This meant that we could bypass a lot of time-consuming obstacles that another broker would come up against.

Following a respectful negotiation, it was agreed that the client would leave €2.5million from the loan as assets under management for the duration of the loan.

 

The solution:

We secured our client his desired 43% loan to value on the property, at a rate of 1.4% variable over a 2-year term. This was an excellent outcome for the client, and the short term of just two years was ideal to complete the renovation work.

 

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