Structuring a €3 million Marbella capital raise around complex ownership and a sale exit
A high-net-worth property owner needed short-term liquidity against an ultra-prime Spanish asset to reinstate two legally separate apartments, complete refurbishment works and prepare them for individual sale. Indicative specialist lending terms were obtained without treating the property’s high value as a substitute for resolving its title and configuration issues.
Wesley Ranger
Wesley reviewed the ownership structure, physical configuration, capital requirement and proposed sale exit together, focusing on specialist lenders able to assess the underlying Spanish security on its merits.
The case at a glance
- The challenge
- Two adjoining Marbella apartments had been physically combined into one residence but remained under separate legal titles and different ownership structures.
- The recommendation
- A specialist short-term facility targeting a €3 million net advance, with rolled-up interest and a sale-led repayment strategy.
- The status
- Indicative terms were obtained. The supplied notes do not confirm drawdown, completion of works or eventual sale.
Exceptional security, but not a conventional lending proposition.
The client and spouse owned two neighbouring apartments within an ultra-prime beachfront development in Marbella. One title was held personally by the couple; the adjoining apartment was owned through a Spanish special purpose vehicle controlled by the client.
The apartments had previously been altered so they functioned as a single luxury residence. That created an attractive home, but it did not merge the underlying legal titles. When the owners later decided that selling the apartments separately would improve marketability, the physical layout needed to be restored to match the legal position.
- Different ownership structures The lender had to consider personally held security alongside an adjoining title held through a Spanish SPV.
- Physical and legal configuration did not align The security needed to become a standalone apartment again before the lender’s surveyor could rely on it as such.
- Capital was being raised after acquisition The requirement was to fund reinstatement and refurbishment works, not to finance a purchase.
- The intended repayment route depended on sale The lending therefore had to be structured around the expected disposal of the refurbished apartments rather than long-term mortgage affordability.
Structure the borrowing around the works, valuation and exit.
Wesley focused on specialist lenders willing to assess a high-value Spanish asset where title, ownership and property configuration all required additional underwriting. The objective was not maximum leverage. It was to release the minimum €3 million required while preserving flexibility if more capital became available for wider investment purposes.
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Restore the security to a standalone dwelling
Reinstate the dividing wall, reverse the relevant internal alterations and reconstruct the original staircase before the lender’s surveyor inspected the property.
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Target the required net liquidity
Seek a facility capable of providing a €3 million net loan against the property, rather than borrowing simply because more equity was available.
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Align servicing with the refurbishment period
Use retained or rolled-up interest so there would be no monthly interest servicing requirement while capital was being directed towards the works.
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Repay from the planned property sales
Structure the short-term facility around the intended sale of the reinstated apartments, with sufficient contractual flexibility for the marketing and disposal process.
The indicative structure provided a €3 million net loan, annual rolled-up interest of 11.5%, a minimum 12-month term with availability up to 24 months, and no early repayment charges after the initial year.
Higher cost in exchange for a structure conventional lenders could not readily provide.
The strength of the asset was important, but it was not enough on its own. A lender still needed confidence that the property offered as security matched its legal title, could be independently valued and had a credible route to repayment.
Rolled-up interest was particularly relevant because the client’s immediate objective was to preserve cash for the reinstatement and refurbishment programme. Removing monthly interest payments reduced pressure on project liquidity, but it did not remove the cost of borrowing: interest continued to accrue and would form part of the amount due when the facility was repaid.
Indicative terms created a potential route forward.
Specialist lender discussions produced indicative terms for the required capital raise. On the information supplied, the next steps would have depended on satisfying the lender’s property, valuation, legal and underwriting requirements, including restoring the proposed security to a standalone configuration before valuation.
If progressed successfully, the intended result was to provide the liquidity needed to separate and refurbish the apartments before marketing them individually for sale. The notes do not evidence a completed loan, completed refurbishment or achieved sale proceeds, so those outcomes are not presented as completed facts.
With complex property, the lender must be comfortable with the security as it legally exists—not only with the value the owner believes sits behind it.
Understanding this type of specialist property finance.
Can short-term finance be used to raise capital against an overseas property that is already owned?
Potentially. The available route depends on the jurisdiction, property, ownership structure, purpose of funds, lender appetite and repayment strategy. Existing ownership does not automatically prevent capital raising, but it can narrow the lender pool.
Why did the separate legal titles matter if the apartments had been combined physically?
A lender and valuer need to understand exactly what asset is being taken as security. Where the physical property no longer reflects the legal title, a lender may require works or legal clarification before it can rely on the property as a standalone security.
What does rolled-up interest mean on a bridging facility?
Instead of being paid monthly, interest is added to or retained within the facility and becomes payable when the loan is redeemed. This can protect short-term cash flow, but it increases the amount that must ultimately be repaid.
Why is the exit strategy so important?
Bridging finance is designed for short-term borrowing. Lenders therefore place significant weight on how and when the facility will be repaid, whether by sale, refinance or another credible source, and on the contingency if that route is delayed.
Complex property needs more than a headline valuation.
If you need to raise capital against a high-value property where ownership, title, refurbishment or an overseas jurisdiction makes conventional lending difficult, start with the full security and exit strategy.
Understand your options before you commit. Your initial conversation, assessment and presentation of suitable options are free, with no obligation. Any fees are explained before you decide whether to proceed.
Wesley Ranger
Adviser at Willow Private FinanceWesley advised on the structure in this case. Enquiries are handled by the Willow team so your circumstances can be assessed and directed appropriately.
Enquire with the Willow team 0207 082 5175- 01 Explain the requirement Share the property, funds needed, ownership structure and intended use of capital.
- 02 Assess the structure The team can review security, likely lender appetite, costs and the proposed repayment route.
- 03 Decide whether to proceed Suitable options and costs are explained before you choose whether to engage Willow.
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