- Client: Limited company
- Type of Property: Property in Spain
- Value of Property: €35 million
- Loan-to-Value Ratio: 70%
A limited company looking to build a significant new property in Spain was introduced to Hectocorn by its private bank. The ultra-high-net-worth client had substantial assets and needed quick access to invest in the new €35 million property without affecting its portfolio or disrupting its long-term financial strategy.
The client also required expert insight into the Spanish market as it struggled to gain appealing terms from local lenders, who had restrictive criteria and wouldn’t consider foreign assets as collateral. Hectocorn used its market experience to identify a solution to the client’s conundrum, allowing it to secure immediate access to finance with low rates through a Lombard Loan.
Introducing The Client To Lombard Loans
Lombard loans enable borrowers to secure a fixed loan or overdraft using assets like bonds, equities and investment funds as collateral rather than having to sell them. This approach is effective for securing quick access to finance, such as meeting short-term financial needs and staying invested in markets. Lombard lending is ideal for developers who have a marketable asset portfolio and need to boost cash flow or take advantage of a new investment opportunity.
Many organizations are turning to Lombard loans as they offer rapid access to finance, often taking a maximum of two weeks. The approach is often cheaper, with rates often below 1%, and offers flexible exit options and good terms on short liquidity. As such, Lombard loans are ideal for launching new projects, finalising ongoing ventures, and obtaining short-term liquidity. They can also be used to finance significant lifestyle purchases, such as freeing up finance to purchase art, real estate, or luxury vehicles like jets, supercars, and yachts.
However, securing a Lombard loan requires expert insight from experienced financial consultants, who can identify the best loan conditions and negotiate complex agreements. And financing high-value property in foreign countries can be challenging, especially when working with local banks or lenders.
Hectocorn enabled the client to secure a Lombard loan that boosted its financial flexibility. This approach ensured it could meet its short-term needs without disrupting its long-term economic strategy.
Unlock Fast Luxury Property Finance in Spain with a Lombard Loan
Gaining Access To Property Finance In Another Country
The client came up against a common challenge for developers looking to invest in property in other countries. Securing finance for overseas property can be difficult for foreign national expats, including challenges like:
- Regulatory environment: Stringent building regulations and zoning laws can significantly impact plans and timelines.
- Tax considerations: Specific tax regulations for property purchases require careful planning to ensure optimal profitability.
- Financing structures: Traditional mortgage products may not be suitable for large-scale projects, necessitating more specialised financing solutions.
- Language and cultural barriers: Non-native speakers may need help understanding the complex rules of the French legal and financial systems.
Therefore, ultra-high-net-worth individuals and property developers must understand the potential risks, secure financial forecasts, and gain expert insight into the local market. Hectocorn assisted the client by providing insight into local demand, pricing patterns, and the competitive environment in the Spanish property market. We also used our extensive regional network to help the client gain access to potential real estate agents, attorneys and business partners.
Gaining Quick Access To Funds Through A Lombard Loan
The adaptable nature of Lombard loans allowed Hectocorn to secure an agreement that met the client’s need for immediate funding. The client had significant assets of around €45 million in cash and stocks in Nasdaq or listed FTSE companies. Based on these funds, it could release 60-65% of the funds deposited.
Hectocorn’s team used its extensive network of niche lenders in Spain to introduce the client to a private Spanish bank. We negotiated with the bank to help the client secure immediate access to financing through a Lombard loan. This allowed the client to secure a specialised fixed loan with low rates against its significant existing assets, rather than having to sell them to invest in the property.
Secure Flexible Finance With Hectocorn
Hectocorn diligently monitors changes to Lombard loans and evaluates your financial situation to guarantee deals that align with your financial objectives. Our network of niche providers and specialist banks provides access to a wide range of international lenders, allowing us to secure bespoke financing solutions for any circumstance. This expertise can be invaluable in gaining the best possible terms and navigating the complexities of international property finance.
Hectocorn also provides access to a wide range of financing options tailored to investors’ specific project needs. We have extensive expertise in structuring complex finance deals for ultra-high-net-worth individuals and organizations. And our expert guidance on navigating property laws and regulations in different countries and comprehensive support through the property purchase process.
Discover how Hectocorn can help you secure quick access to finance through Lombard loans by getting in touch.
Frequently Asked Questions
A Lombard loan allows borrowers to use assets like stocks, bonds, or investment funds as collateral to access quick property financing in Spain without selling their investments.
Lombard loans often offer faster approval, lower interest rates (sometimes below 1%), and greater flexibility compared to traditional mortgages—ideal for high-value overseas property purchases.
Yes, foreign companies and ultra-high-net-worth individuals can secure Lombard loans in Spain by leveraging international assets as collateral, even if local lenders reject them.
With the right financial advisor, a Lombard loan can be arranged within two weeks, providing rapid liquidity for property purchases or development projects in Spain.
An FCA-regulated broker ensures compliance, credibility, and access to niche lenders, helping you secure bespoke Lombard loan terms for high-value overseas investments.