Luxury holiday home, Ibiza cliffside

Client situation and intended use

A high-net-worth UK client wanted to acquire a €6.5m cliffside villa in Ibiza for personal use with seasonal short letting. The dual purpose mattered: the property was a holiday home, but the proposed rental income also formed part of the financial context presented to the lender.

Holiday-home mortgage details

The agreed mortgage was €3.9m, equal to 60% of the purchase price, with a 20-year interest-only term. The scale of the loan and the seasonal nature of the rental profile meant the case required a private bank prepared to consider both the client’s UK income base and the property’s anticipated short-let income.

• €6.5m Ibiza cliffside villa
• €3.9m mortgage at 60% LTV
• 20-year interest-only term
• Personal use combined with seasonal letting

How the case was presented

Through specialist partners, the application was placed with a private bank whose criteria could accommodate the client’s financial profile and the intended use of the villa. The proposal did not rely on seasonal rent alone; it presented that income alongside the established UK income base and the client’s contribution to the purchase.

Outcome for the UK client

The purchase completed before the summer season and the property was let successfully during its first season. For UK-based buyers considering a high-value Spanish holiday home, the case illustrates how property use, overseas income, loan currency, repayment basis and rental expectations need to be considered together when selecting a suitable mortgage route.