€3m villa capital raise, Ibiza

Capital requirement and available security

Long-standing clients needed €3m to complete substantial development works on a London property. Existing mortgages on that asset prevented further UK borrowing, leaving their Ibiza residence as the available security. Other brokers had been unable to place the case because relatively few lenders provide bridging secured on Spanish residential property.

Spanish bridging structure

The proposed loan was a €3m bridge at 60% LTV over 12 months, secured against the Ibiza residence. Repayment was expected from a sale of the Spanish property within the term. The clients transferred ownership of the Ibiza asset into a limited company before drawdown after taking their own legal and tax advice.

• €3m capital raise
• 60% LTV and 12-month term
• Spanish residential property used as security
• Sale of the Ibiza property formed the exit

Specialist placement

Through specialist partners, two private lenders known to consider Spanish residential security were approached. Indicative terms were obtained and the preferred funder progressed the case while the clients’ solicitor coordinated the ownership change and completion requirements.

Outcome and repayment plan

The facility released the funds needed to continue the London development works. The agreed repayment route remained sale of the Ibiza residence within the 12-month term. This was a specialist cross-border capital raise rather than a standard residential mortgage, with the Spanish asset supporting a UK use of funds.