Bridging loan on €5.3million Monaco property

THE SCENARIO

My client was a private investor in his late fifties, currently living in Scotland. After hearing about our local network in Monaco and access to banks in offshore jurisdictions, he approached Enness International to discuss a Monaco property refinance.

The property in question was valued at €5.3million, with outstanding debt of €2.7million, and was held in a British Virgin Islands (BVI) company. A stunning rental property looking across the main port of Monaco, my client felt Enness would be ideally placed to assist with his Monaco property refinance because our presence in the region means we have fantastic lender relationships which enable us to overcome complex hurdles.

Unfortunately, his lender wished to exit his current relationship in the near future; he therefore urgently need to refinance his property.

However, there were several factors which meant it would be difficult to arrange this; whilst the property had increased significantly in value, Monegasque lenders aren’t generally happy to lend against property price inflation. They typically prefer to see that clients have put money in to the asset, which can then be released back to them.

Monegasque lenders also have no appetite for offshore structures because they aren’t transparent, and most don’t require the clients to provide audited accounts, so it is difficult to prove the cash flow and origin funds for a buy to let property.

OUR SOLUTION

My client therefore needed to approach a specialist broker to secure a speedy resolution—he essentially needed bridging finance, which is challenging in Monaco. To arrange this Monaco property refinance, we approached an offshore lender who could operate in Monaco due to having an office there. This lender was very comfortable and familiar with lending against Monegasque properties and could work with properties held in an offshore trust.

This lender was happy to extend a bridging loan facility of €3million, with all arrangement and legal fees to be included within this. We were able to secure these terms very quickly, exactly as desired by the client.

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