A €7 million loan to a structure ultimately owned by a UK non-dom

Key Highlights

KEY HIGHLIGHTS

  • PROPERTY: International real estate
  • LOAN AMOUNT: €7 million
  • LOCATION: Prime European destination
  • LOAN TERM: 18 months
  • BORROWER: Channel Island Company

 

A recent client has approached us with the intention of repaying their existing debt associated with a villa in the highly prestigious locale of Mallorca. We successfully orchestrated a loan arrangement for them, spanning 18 months.

To secure this financial arrangement, we relied on the shares and corporate guarantee offered by a United Kingdom-based company, which, in turn, possesses a Spanish SL entity that holds the property. The loan-to-value (LTV) ratio in this case stood at 51%, with the added assurance of personal guarantees from the Ultimate Beneficial Owner (UBO).
Notably, this transaction entailed the transfer of property ownership from individual names into the corporate structure, a process that was seamlessly executed alongside the loan completion.

Furthermore, it is worth noting that this transaction required obtaining legal permissions to effect the property transfer, a task undertaken with efficiency by our Tenn team. We provided the borrower with valuable counsel and support throughout the entirety of this transaction.

This transaction serves as yet another illustration of our expertise in facilitating cross-jurisdictional arrangements. We warmly invite prospective clients who may find themselves in need of such financial solutions to reach out to us.