- €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 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 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.
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.