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Purchasing a property in Spain to retire in the future

A wealth planner, private bank and investment manager all-in-one.

Our clients’ wishes

Clients introduced by one of our trusted brokers wished to release £1.3 million of equity from their main residence to support the purchase of a property in Spain, with the longer-term intention of retiring there. The proposal was structured to meet their immediate funding requirements while recognising their changing income position following the recent sale of their business.

Our clients’ situation

The clients had recently sold their business and remained directors of the company. As part of the buyout structure, Mr Y was taking a minimum salary until 2027, when remuneration is expected to increase and provide evidence of ongoing affordability.

To accommodate this transitional income period, the lending was structured with 50% loan-to-value on an interest-only basis and a further 15% loan-to-value on a repayment basis. This provided a balanced solution, supporting the equity release while ensuring the repayment element aligned with the clients’ anticipated future affordability.

In addition, a charged cash deposit equivalent to one year’s interest was taken to provide further comfort until the increased income could be evidenced. Once proof of the increased salary is received, the deposit can be reviewed and released.

Following a swift sanctioning process and valuation, we kept the transaction on track to meet the property purchase deadline and aligned the drawdown accordingly.

Our clients’ outcome

This was a positive outcome for the clients, allowing them to proceed with their plans to purchase a property in Spain while maintaining a prudent lending structure during a transitional income period.

Following a swift sanctioning process and valuation, we kept the transaction on track to meet the property purchase deadline and aligned the drawdown accordingly. This impressed both the introducer and the clients, who are now exploring additional opportunities to develop their relationship with us through our ancillary services.

The case demonstrates our ability to provide tailored lending solutions at pace, while supporting clients’ wider lifestyle objectives and creating opportunities to deepen the broader banking relationship.

Contact

Get in touch to find out how we can help you with your financial challenges.

Clients of Nedbank Private Wealth can get in touch with their Wealth Adviser directly to understand how wealth planning can help them achieve their financial goals and objectives, or call +44 (0)1624 645000 to speak to our client services team.

If you would like to find out more about how we can help you with wealth planning support, please contact us on the same number as above, or complete the contact us form using the link below.

Investment values can go down, as well as up, to the extent that you might get back less than you originally invested. The value of your investments may also be affected by exchange rates. The inclusion of any investment structures and wrappers is for information only and should not be taken as advice or a recommendation. You should seek the necessary advice, specific to your circumstances, before making any financial decision.

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We have helped countless high-net-worth clients with their financial needs – some straightforward, some complex. Our bespoke approach, where we really get to know our clients, allows us to offer solutions that other wealth planners and private banks aren’t able to.