If you’re considering buying a luxury holiday home or relocating in Europe, finding a property is easy enough—but the next step, international property finance, is considerably trickier to arrange. From language barriers to different lender attitudes, arranging a large loan abroad can quickly turn complex, and without the right advice you may be left empty-handed.
The first step is understanding what and where you can borrow. Monaco and the French Riviera are two examples of spots where it’s possible to borrow extensively—the Enness International team set up an representative office in Monaco to cater for this specifically. There are a number of large banks and lesser-known local lenders in the region, meaning clients of many different nationalities can secure lending in the region.
However, clients should be aware that a mortgage in France generally requires assets under management. For example, we could feasibly look to finance property at 100% loan to value across areas such as Paris and the French Alps, at rates of between 1.4-1.45%, but this would require assets under management.
We recently arranged a loan in Italy for two clients looking to purchase a holiday home, on a capital repayment basis, at a quarterly interest rate of 3-month EURIBOR + 2.25%. There are fewer lenders who will lend in Italy, but this is something we can achieve for the right client.
Spain is becoming increasingly popular again, with prices set to boost significantly over the next five years—so many of our clients are looking to get in ahead of this upward curve. In Spain, clients with straightforward profiles could expect to borrow up to 70% loan to value, on a capital repayment basis, at rates of about 1.9%.
Switzerland is another popular destination. Again, many clients will be required to place assets under management as a condition of lending, but this does mean you could reasonably expect to take out an interest-only loan of up to 75% loan to value. Location dependent, terms could vary from 1.2% 5-year fixed on an interest-only basis, with assets under management, or an 80% loan to value ‘dry loan’ at 2.2%.
Of course, if you’re looking further afield, this is on a very case-by-case basis—but as a starting point, borrowing is definitely possible in the Caribbean, which is a desirable spot for many high net worth investors. Whatever your international property requirements are, it’s more than possible we could help—get in touch for a personalised illustration.
*Hugh Wade-Jones is the Managing Director of Enness International, the specialist high-end lending division of Enness, which caters for clients looking to acquire or refinance overseas property, specifically those located in France, Monaco, The Balearics and Switzerland.
Enness International is the specialist, high-end lending division of Enness, catering for clients looking to acquire or refinance overseas property, specifically those located in France, Monaco, The Balearics and Switzerland.
Enness International was established by Hugh Wade-Jones and Islay Robinson in 2017 to provide high quality advice and solutions for every aspect of European real estate finance, be it residential, commercial, bridging or development. We work with clients of any nationality to secure the best international mortgage terms for them.
Established in 2007, Enness (www.enness.co.uk) is an independently owned, and completely impartial, large mortgage brokerage in Central London. Having launched at a time of economic downturn, the business has gone from strength to strength, growing from a three-man operation in Battersea, to a team of almost 70 in offices in Mayfair, Hampstead, Monaco, and Dubai, with access to one of the largest networks of lenders in the industry.
For further information on Enness International please visit: www.ennessinternational.com