PROPERTY: Spanish Residential Property
LOAN AMOUNT: £2 million
LOAN TERM: 12 months
BORROWER: UK Holding Company
Our client, a high-net-worth individual based in the UK, needed to release funds to finalise the development of a luxurious villa in a highly esteemed resort in Southern Spain. The required equity release amounted to £2 million against the nearly completed villa, with an estimated value of approximately €30 million upon completion.
To facilitate the financing, Tenn engaged with the UK Holding Company, which serves as the parent entity for the Spanish SL that, in turn, owns the upscale property. The transaction involved securing a first charge on the property, complemented by share charges placed on each corporate entity involved. Additionally, a personal guarantee from the Ultimate Beneficial Owner (UBO) added an extra layer of assurance.
This case presented the complexity of a cross-jurisdictional transaction, as it involved parties in both the UK and Spain. Despite the inherent challenges, Tenn successfully navigated this landscape, demonstrating efficiency and proficiency in handling such intricate financial arrangements.
The success of this equity release was attributed to the effective collaboration between various stakeholders. The collaboration extended beyond the Tenn team, encompassing the client and legal professionals involved. The lawyers, client, and Tenn team played a pivotal role in expediting the transaction within an impressive six-week timeframe.
In summary, Tenn’s strategic approach to this equity release case allowed our high-net-worth client to secure the necessary funds for the completion of their villa in Southern Spain. The transparent and collaborative efforts among all parties ensured a smooth and efficient process, emphasising Tenn’s capability to navigate complex, cross-border transactions with agility and precision.