- Client: Formula 1 Driver
- Type of Property: Residential home in Monaco
- Value of Property: €17.28 million
A young sports professional was introduced to Hectocorn to assist with the purchase of a new home in the heart of Monaco. The Formula 1 driver was seeking a new home that allowed them to benefit from tax benefits and the glamorous lifestyle of the French Riviera on the southwest coast of France.
Financing A Luxury Monaco Property
The athlete was introduced to Hectocorn by their asset manager, who couldn’t assist with property lending or purchasing and didn’t have access to private mortgage lenders. The F1 driver had identified a luxury apartment valued at €17.28 million in the Carre d’Or (Golden Square) district, one of Monaco’s most sought-after property locations. This luxurious district attracts Monaco’s wealthiest inhabitants with stunning Belle Époque buildings, immaculate gardens, close access to Monte Carlo Casino and some of the world’s finest boutiques. Carre d’Or is home to highly in-demand properties that boast world-class amenities and views of Monaco.
Hectocorn helped the buyer understand how to obtain a mortgage on a foreign property and walked them through options that maximised financial flexibility. This included considering residential mortgage products like:
High Loan-to-Value: Hectocorn introduced the buyer to a private bank that would consider a high loan-to-value (LTV) ratio, which determines the interest rate the buyer will pay on their mortgage. The LTV ratio is important to lenders as they want to limit the risk of losing money if a buyer fails to make mortgage payments. But a high LTV can be a vital strategic tool for UHNWIs if they can guarantee their ability to make regular repayments.
Hectocorn helped the F1 driver demonstrate their significant assets, income and wealth, which addressed any lender concerns around potential risk and limited access to cash for a deposit. As such, the private bank agreed to a high LTV ratio of 80%, which enabled the buyer to secure a €13.8 million loan agreement.
Assets Under Management: Utilising assets under management (AUM) was a favourable option for the buyer as it considered their vast investment portfolio to provide financial flexibility. Private banks often prefer to establish long-lasting relationships with clients, which can be achieved by using assets such as stocks, shares, properties and cash as security against a loan. The buyer’s considerable assets enabled the private bank to offer greater flexibility with their criteria and requirements.
Variable Repayments: Variable loan products have become popular with many ultra-high-net-worth individuals (UHNWIs) as they suspect base rates will decrease, thus providing more favourable future repayment rates. This was the case with the F1 driver, who wanted to keep their investment options open and take advantage of any fluctuations in interest rates. Hectocorn negotiated a residential mortgage agreement that included variable loan repayments, providing the buyer with the flexibility they required in their property purchase.
The private bank comprehensively reviewed the client’s considerable personal income, financial portfolio and existing assets. It then thoroughly appraised the target property before offering favourable rates and terms.
Secure Your Bespoke Monaco Luxury Property Finance
Why Wealthy Individuals Purchase Property In Monaco
Monaco stands alone in the property world, a haven for the rich and famous to own property in a country smaller than New York’s Central Park. New-build properties in Monaco will cost upwards of €40 million, with the average apartment costing around €5 million. Monaco remains popular with ultra-high-net-worth for a wide range of reasons, including:
Tax Benefits: One of the Principality’s biggest attractions is its position as a tax haven. Monaco doesn’t have any form of direct taxation, including no property tax, housing tax, capital gains tax or real estate tax. In fact, the only direct tax paid in Monaco is on the profits of organisations that amass over 25% of their turnover outside of the Principality.
High Exclusivity: Monaco offers unparalleled levels of exclusivity and privacy. The tiny nation has exceptionally high living standards, an extremely low crime rate, and excellent education, infrastructure, and healthcare options. It also offers the option to mingle with celebrities and royalty in the heart of a busy city or escape the hustle and bustle by retreating to a secluded apartment or villa.
Investment Potential: Another critical attraction of purchasing a home in Monaco is its liquidity. Monaco property is only likely to continue to appreciate value following a purchase, making it a good investment opportunity for any UHNWI.
Secure Your Dream Luxury Apartment With Hectocorn
Hectocorn specialises in helping ultra-high-net-worth individuals and organisations purchase luxury properties in prime real estate locations worldwide. Our team of brokers has extensive knowledge of the European property market and access to a world-class network of niche lenders and specialist private banks that aren’t available via the high street.
Our experts regularly negotiate high LTV ratio mortgages on multi-million-pound luxury properties, helping high-value clients to maximise their borrowing potential. And, as in this case, we provide critical end-to-end support throughout the mortgage application and property purchase process.
Discover how Hectocorn can help you finance your luxury home in dream locations like Monaco by getting in touch.
Frequently Asked Questions
UK residents can secure luxury Monaco property finance through private banks and specialist mortgage brokers who arrange high loan-to-value (LTV) residential mortgages.
A high LTV mortgage, such as 80%, allows ultra-high-net-worth individuals to borrow more while preserving cash flow and maintaining investment flexibility.
Yes. Assets like stocks, shares, and property can be used as collateral to negotiate better terms with private banks for high-value Monaco property purchases.
Monaco offers tax benefits, exclusivity, security, and strong investment potential, making it one of the most sought-after real estate markets in the world.
Private lenders often provide bespoke mortgage solutions, including variable repayment options, to give UHNW buyers flexibility in managing their investments.