A high-net-worth property owner required a €3 million capital raise against an ultra-prime beachfront property in Marbella.

Although the property carried a valuation significantly higher than the required capital, its unusual ownership and physical configuration meant conventional lenders were unable to provide a practical solution. Working closely with the client, Wesley Ranger structured a specialist lending solution that released the required capital, enabling extensive refurbishment works before the property was marketed for sale.

This type of scenario is increasingly common amongst high-net-worth clients who own luxury overseas property. Borrowers searching for capital raising against Spanish property, borrowing against an existing overseas asset, or specialist finance for luxury real estate often discover that traditional banking solutions become significantly more limited once funds are being raised for purposes other than acquisition.

A Unique Ownership Structure Created An Unexpected Challenge

Several years earlier, the client and his wife had acquired two neighbouring apartments within one of Marbella's most prestigious beachfront developments.

One apartment was purchased in their personal names, whilst the adjoining apartment was acquired through a Spanish special purpose vehicle (SPV), of which the client was the sole ultimate beneficial owner.

Rather than leaving the apartments as separate residences, they undertook an extensive programme of works to physically integrate both units into one exceptional luxury home. The resulting property offered uninterrupted living accommodation, premium finishes and extensive outside space overlooking the Mediterranean, creating a residence that sat comfortably within Marbella's ultra-prime property market.

However, while the physical integration created an impressive home, the legal position remained unchanged. Both apartments continued to exist under separate legal titles.

When the client later decided to dispose of the property, this presented an unexpected obstacle. Marketing the combined residence proved considerably more difficult than anticipated, limiting the pool of potential purchasers and affecting liquidity within an already niche market.

The decision was therefore taken to reverse the previous alterations, reinstate the two individual apartments and sell each property independently, maximising overall marketability and expected sale proceeds.

Why Traditional Lending Wasn't Suitable

Although the client held substantial equity, raising capital against an existing Spanish property presented a very different proposition from arranging finance to purchase one.

Traditional lenders often struggle to support retrospective capital raising where the funds are intended for refurbishment, asset enhancement or liquidity rather than acquisition. The Spanish lending market offers relatively few institutions willing to advance significant sums against property that is already owned, particularly where ownership structures involve corporate entities and the proposed exit relies upon future property sales.

Underwriting complexity was increased further because the security property had previously been physically incorporated into an adjoining residence.

Whilst the legal title remained separate, the lender needed confidence that the property would once again exist as a standalone dwelling before relying upon it as security. This required the dividing wall to be reinstated, internal alterations reversed and the original staircase reconstructed before the lender's surveyor carried out their inspection.

This type of lender behaviour is not unusual. Specialist lenders are often comfortable supporting complex transactions, but only where the proposed security accurately reflects its legal title and can be independently valued.

Structuring The Finance Around The Exit Strategy

Working closely with the client, Wesley Ranger focused on lenders capable of assessing the transaction based on the strength of the underlying asset rather than adopting a purely transactional approach.

The property itself represented exceptionally strong security. Located adjacent to one of Marbella's most prestigious hotels, it occupied a prime beachfront position within a luxury residential development benefiting from concierge services, landscaped gardens, swimming pools and high levels of security.

The most recent independent valuation provided a strong market value, reflecting both the property's quality and the continuing strength of Marbella's ultra-prime residential market.

Rather than seeking maximum leverage, the strategy centred on obtaining sufficient liquidity to complete the reinstatement and refurbishment works while maintaining a comfortable loan-to-value ratio

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The client required a minimum of €3 million, with flexibility to increase borrowing should additional capital be available for wider investment purposes.

Following discussions with specialist lenders active within the Spanish market, Wesley secured indicative terms for a facility providing:

• Net loan of €3 million
• 11.5% annual rolled-up interest
• Minimum 12-month term with availability up to 24 months
• No early repayment charges after the initial year
• Interest fully retained, removing the need for monthly servicing during the project

The rolled-up interest structure was particularly important. By eliminating monthly repayments, the facility preserved liquidity throughout the refurbishment programme, allowing capital to remain focused on enhancing both apartments before disposal.

Balancing Cost Against Flexibility

Facilities of this nature inevitably attract higher pricing than conventional residential mortgages.

However, this reflected the specialist nature of the transaction rather than any weakness in the client's financial position.

The lender was advancing a multi-million-euro facility secured against a high-value overseas property within a specialist jurisdiction, relying upon a future refurbishment programme and ultimate sale for repayment.

Alternative funding routes were explored, but many were either unable to accommodate retrospective capital raising, unwilling to lend against the existing property configuration, or offered insufficient flexibility around the client's anticipated exit timetable.

Accepting a higher funding cost provided significantly greater certainty of execution, removed pressure from monthly cash flow and allowed the client to proceed with the works immediately rather than waiting for a more conventional solution that may never materialise.

The Outcome

With indicative terms secured, the client was positioned to access the capital required to separate the apartments, complete the refurbishment programme and bring two individual luxury residences back to the Marbella market.

Rather than remaining constrained by an unusual ownership structure and an illiquid combined property, the finance created a clear route towards maximising the eventual sale value whilst providing additional liquidity throughout the process.

For high-net-worth property owners, this demonstrates that complex ownership arrangements do not necessarily prevent significant capital being raised where the transaction is carefully structured and presented to the right specialist lender.

It also highlights the importance of understanding the differences between mainstream lending and specialist international property finance.

Similar principles frequently arise in bridging finance strategies, cross-border property lending, complex corporate ownership structures and other forms of international property finance, where lender appetite varies considerably depending on both jurisdiction and security.



Key Takeaways

What made this transaction possible was not simply the value of the underlying property, but the way the case was structured. Rather than focusing solely on the client's borrowing requirement, the lender assessed the quality of the security, the realistic exit strategy and the practical steps being taken to restore the property to its individual legal configuration before valuation.

Traditional lenders often struggle with retrospective capital raising on overseas assets, particularly where ownership structures or property layouts introduce additional underwriting complexity. Specialist lenders are able to adopt a more commercial approach, provided there is a well-defined strategy, strong underlying security and a credible repayment route.

For borrowers considering raising capital against high-value overseas property, early engagement with a specialist adviser can significantly improve access to lenders capable of understanding complex cross-border transactions and tailoring finance around the client's broader objectives rather than applying standard residential lending criteria.