Financing
Buying in Marbella without selling your investments
A simple worked example of a hybrid structure that keeps a portfolio invested while acquiring a €2m property.
The question
A client with a €3,000,000 investment portfolio wants a €2,000,000 home in Marbella but does not want to liquidate two-thirds of the portfolio.
Two routes
- Cash: sell €2,000,000 of investments; €1,000,000 remains invested
- Hybrid: €1,000,000 traditional mortgage plus a €1,000,000 portfolio-backed facility; the portfolio remains largely invested
Stress-testing
With €1,000,000 borrowed against €3,000,000, the starting portfolio LTV is around 33%. If markets fell 20%, the portfolio would be €2,400,000 and LTV would rise to around 42%. That is why starting leverage should be conservative and liquidity buffers adequate.
This example is illustrative only. Rates, lending values and eligibility vary, and all financing is subject to lender approval.
Financing examples are illustrative and do not constitute an offer of credit. Availability depends on the client profile, collateral, property, jurisdiction and lender approval.
General information only, not legal, tax or investment advice. Rules and rates change; confirm with independent professionals.
Private Access
Request Private Access
Share your brief in confidence. An advisor will respond personally, usually within one business day, with a considered first view and a curated shortlist.