Balearic Island bridging loan for renovations

THE SCENARIO

Enness is able to work with clients all over the world, and also able to secure finance for properties outside the UK. I recently helped a client secure a bridging loan for renovations on a Balearic Islands property. My client was a retired gentleman in his sixties, with a track record of investing in real estate abroad.

The property my client was looking to profit from was a £1.2million property in Palma de Mallorca, one of Spain’s most popular and well-known Balearic Islands. Mallorca is known for its rich cultural and literary history, as well as its popularity as a family holiday resort. In terms of property, it has become increasingly popular in recent years- exposure in the media has led to a ‘Balearic buying boom’ and a flux of wealthy visitors to the island.

With the Balearic Islands property market showing signs of strength, my client’s intention was to release equity to renovate the property and sell it for a profit. He intended use these profits to repay this loan.

OUR SOLUTION 

We have access to a range of lenders who can help us to find solutions for challenging situations. However, having access to a lender doesn’t always equate to being able to secure a product. In this instance, I was able to secure this loan because of my personal relationship with the lender; I actually sourced this lender and began their working relationship with Enness.

As a result of my excellent relationship with the lender, I was able to secure a first charge over the property of £650,000. I secured this loan for him at a rate of 0.9% per month for a period of 18 months.

The client was delighted with this as it meant he would be able to proceed with the intended renovations, and give the property a luxury finish to ensure he would achieve a solid profit upon completion of the sale.

My client was very happy with these terms, and excited to begin the renovation process.

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