I recently secured a bridging loan on a 17th century property for an expat in Mallorca. My client needed to close his deal by the end of the month as there was high demand for the property, and so this needed to be completed with speed and efficiency.
The 17th century property was complete with all original features, including an illustrious chapel, 50 hectares of land and most awe-worthy of all, a mountain! It was easy to understand why this was such a hot property in Mallorca, and resultantly why my client was so keen to get his loan secured as swiftly as possible.
The property was worth €11million, and my client wanted to borrow €8million to complete a commercial project which would renovate all existing buildings to a luxury standard, with a potential plan for a new hotel conversion.
The issue I encountered with this case arose in my client’s need for a speedy valuation. Valuations can be particularly troublesome due to geographical location. Unlike in the UK where you can hop in a car and drive to the property in a matter of hours, this is simply not the case in Spain. I also required a 90-day value as a British valuation requirement, and so I had to use a valuer who I have worked with previously who understood my client’s situation.
After using my relationships within my Mallorcan network to push forward the valuation, I then managed to secure a term with a lender at great speed. My client had a Gibraltarian limited company already set up which the lender could lend to, which not only kept cost down but also avoided tax charges that may have occurred due to national policy differences.
My client was extremely happy with the 6-month term I had achieved for him, as the particular lender I used can fund projects abroad which are not standard purchases and also may require development work.
The speed with which I could complete the valuation and turn the loan around is a testament to our close working relationships at Enness. We take the time to understand your whole financial picture, to find efficient solutions to your financial needs.