Milan & Rome Mortgages

Milan, the capital of the Lombardy region, and Rome, the capital of Italy, have attracted more than their fair share of high net worth investors over the years. The lifestyle, beauty, culture and the blossoming luxury property markets have created a very strong magnet for overseas investors. The high-end property markets in Milan and Rome offer a mix of new and old and are predicted to be the major benefactors of significant investment growth across Italy. Compared to the likes of Paris and London, the Milan and Rome property markets still offer extremely good value.

 

Milan and Rome real estate

Even though experts believe that the Milan and Rome property market will outperform the broader Italian market, they will obviously be impacted to a certain extent by the volatile nature of the recovering Italian economy. In many ways it is fair to compare Milan and Rome to the likes of London and Paris where property prices do not always move in the same direction as the broader domestic markets. As a consequence, we are seeing increased demand from domestic investors, those in the broader EU and also Asia.

It is worth noting that Rome has on occasion secured a top 20 spot in the millionaire density rankings and Milan is not too far behind. As a consequence, where there is demand for mortgage finance the industry will be highly visible and active.

 

Can foreigners buy property in Milan and Rome?

On paper there are restrictions for foreigners looking to acquire property in Italy but in reality it is fairly straightforward. Those located outside of the EU, in a country with no reciprocal agreement, will require a valid residence permit to acquire property in Italy. Those located within the EU will have unrestricted access to property with Brexit unlikely to bring about any major changes for UK investors looking at Milan and Rome. Experts are already predicting the confirmation of reciprocal rights between Italy and the UK in the not too distant future – similar to those currently in place between the US and Italy.

 

Luxury property mortgages

As you would expect, there are two types of mortgages available, interest only and capital repayments. Due to the specialist nature of Italian high-end property market, mortgage funding tends to come from the private banking sector although some traditional banks are still competitive. It is fair to say that the likes of Italy and Spain do not have a traditional banking community which is as developed as the UK. As a consequence, for those foreign mortgage transactions which are a little more complicated, private banking may well be the only real option.

We have access to a whole array of private banks and mortgage financiers across the globe. Interestingly, private banking finance for Milan and Rome mortgages can reach 100% of the LTV on a capital repayment basis. To access this level of finance you would need to place 40% of the loan value with the lending institution for the life of the loan. This ensures that investors receive maximum capital release and lenders have significant headroom in the event of unforeseen issues.

 

Mortgage finance structures

While there may be opportunities to acquire traditional bank mortgages in Italy, we see many high net worth individuals going towards private banks. Due to the way in which private banks are financed they are more flexible and more adaptable when it comes to considering worldwide assets and worldwide income streams. They also tend to be more understanding of bonuses and regular payments aside from traditional salaries.

We have a very strong working relationship with many private banks, we know the information they require, the best banks for your situation and how to present your finances in the best light. As a consequence, where some mortgage brokers may step back because of complications we tend to step forward and find a solution. The ability to mould a mortgage finance arrangement around your finances means you maximise capital release while minimising financial liabilities going forward.

 

Call us today

Here at Enness we have experience going back many years and contacts right across the mortgage finance market. Our independent status allows us to speak with any lenders in the marketplace and ensure we secure the best deal for our customers. Why not call one of our experienced brokers today for a no obligation chat? You can discuss your specific circumstances, your aims for the future and we will advise you of readily available solutions.

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