Fiduciam closes the first 2019 Spanish bridging loan

Fiduciam issued its first Spanish loan of the year, a loan of € 850,000 guaranteed on a luxury villa in Mallorca with a term of 18 months and an interest rate of 0.80% per month.

The loan and guarantee have been fully structured according to Spanish law, with all documentation in Spanish, carried out by the Spanish Fiduciam team based in London.

Cristina Villén, (photo), behind the Fiduciam loan, said: “This was the typical case of a wealthy foreign individual who needed to extract cash from an investment property that is being marketed. for sale.

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“The principal has developed a real estate trading activity in Mallorca and remains a major private investor in his country of origin. Spanish banks are reluctant to finance real estate transactions and commerce by foreign nationals.

“At the same time, private banks, which would historically have granted such a loan, have sharply reduced their cross-border loan proceeds.”

Clint White, Head of Mortgage at Fiduciam, added: “During 2018, we moved our Spanish team to London. Our systems allow multi-currency and multi-jurisdictional loans, allowing us to enter new markets.

“Spain has suffered an amount of deleveraging that is foreign to us in the UK, with many people selling properties in a very short period of time.

“Many Spanish banks have completely disappeared, which often makes it more difficult for small entrepreneurs to access finance, so Fiduciam is taking over. Demand for bridging and development loans is skyrocketing, so it is realistic to expect to double our loans in Spain in 2019. ”

Fiduciam intends to double its lending volume in Spain to 40 million euros in 2019. Last year Fiduciam’s total loans in the country stood at 21 million euros, although it was only launched there in January 2018.

Fiduciam is starting the year strong as it currently has nine late stage loan applications in its Spanish pipeline, with application fees and legal fees paid, all to be closed in January and February, for a total amount. of 12 million euros.

As the Spanish legal system is based on civil law, a Spanish mortgage has more similarities to a Dutch or French mortgage than an English mortgage, which can make it much more difficult for most UK-based lenders. .

As has become the case with Fiduciam loans in Spain, the borrower is a foreign national who has established a real estate business in Spain.

While Spanish loan applications are often made to London-based Fiduciam through international brokers, in this case the request came directly from a Mallorca-based intermediary who had heard of Fiduciam.

Fiduciam identified the Spanish market as a market with high potential and launched there in early 2018. It grants loans in Spain for amounts ranging from 400,000 to 25 million euros with interest rates starting at only 0.80% per month.

The fastest turnaround time for Fiduciam’s bridge loans in Spain was only 10 days. His biggest Spanish loan to date is 4.2 million euros.

Priscilla C. Carnegie