Smart Financing
Buy property without automatically selling your investments.
For many international private clients the real question is not which property, but how to fund it without dismantling a portfolio built over years. We compare the options with you and coordinate lenders and advisors.
Four ways to fund a Marbella purchase
Cash purchase
Simple and fast, but concentrates capital in one illiquid asset and may require selling investments.
Traditional mortgage
Spanish property finance assessed on income, residency and the property. Non-residents often see lower loan-to-value ratios.
Portfolio-Backed Property Financing
An eligible investment portfolio is pledged as collateral and stays invested. A €1,000,000 portfolio might support a facility of around €700,000 (c. 70% loan-to-value), depending on its composition. Also known as Lombard lending.
Hybrid financing
A mortgage combined with a portfolio-backed facility, potentially funding 100% of the total acquisition, including taxes and costs, without selling investments.
Explained
Portfolio-Backed Property Financing
Sometimes known as Lombard or securities-backed lending. An eligible investment portfolio can potentially be used as collateral for a loan, while the portfolio remains invested.
Why clients consider it
- The portfolio can remain invested and keep its market exposure
- Financing can sometimes be faster than a traditional mortgage
- It can involve less property-specific paperwork
- Structures may be interest-only rather than capital-and-interest amortisation
- It can be combined with a mortgage in a hybrid structure
What must be understood
- Interest still applies
- Approval is case-by-case
- Collateral value can fall
- Margin calls or requests for additional collateral can occur
- Forced repayment or asset sales may occur in adverse markets
- Leverage should be used conservatively
- FX risk may apply if loan and portfolio currencies differ
Illustrative example
Financing 100% of the acquisition
A buyer could potentially finance the full acquisition, including the property price and associated transaction costs, by combining traditional property finance, portfolio-backed lending and existing liquidity.
Depending on the structure, the portfolio-backed facility can also be used to fund taxes, legal fees, notary costs, valuation fees and other acquisition expenses.
- “100% financing” here means 100% of the total acquisition requirement, not only the property price
- Mortgage approval depends on income, residency, property value and lender
- Portfolio-backed lending depends on the portfolio and lender approval
- A hybrid structure should always be stress-tested
- Property price
- €2,000,000
- Taxes, legal, notary and acquisition costs
- €200,000
- Total acquisition requirement
- €2,200,000
- Traditional mortgage 50% of property price
- €1,000,000
- Portfolio-backed facility e.g. c. 70% of an eligible portfolio of c. €1.7m
- €1,200,000
- Total funded
- €2,200,000
- Cash sale of investments required
- €0
Financing examples are illustrative and do not constitute an offer of credit. Availability depends on the client profile, collateral, property, jurisdiction and lender approval.
How much can a portfolio support?
Up to approximately 70% of portfolio value
Where suitable, a portfolio-backed facility may be illustrated at up to approximately 70% loan-to-value. The actual lending value depends on:
- Portfolio composition
- Concentration
- Volatility
- Liquidity
- Currency
- Jurisdiction
- Lender approval
- Eligible investment portfolio
- €1,000,000
- Illustrative portfolio-backed facility
- €700,000
- Illustrative loan-to-value
- 70%
Illustrative only. A diversified portfolio of liquid, high-quality securities typically supports a higher lending value than a concentrated or volatile one. Borrowing below the maximum leaves a buffer if markets fall.
Stress test
Why a collateral buffer matters
A €1,200,000 portfolio-backed facility secured on a €2,000,000 portfolio: a starting loan-to-value of 60%, below an illustrative c. 70% maximum. Move the slider to see how the loan-to-value rises as markets fall.
- Portfolio value
- €1,800,000
- Facility
- €1,200,000
- Portfolio LTV
- 67%
Starting LTV 60%. A 10% fall takes it to c. 67%; a fall of around 14% reaches the illustrative c. 70% marker, at which point a lender may ask for additional collateral or partial repayment. Borrowing at the full maximum leaves no buffer. Actual lending values and margin-call levels are set by each lender.
A simple investor example
Keep your investments working while acquiring property.
An illustrative client with a €2,000,000 liquid investment portfolio wants to acquire a €2,000,000 Marbella property. With taxes and costs, the total acquisition requirement is €2,200,000.
Option A
Cash purchase
- Investments sold
- €2,000,000
- Further cash for taxes and costs
- €200,000
- Remaining invested portfolio
- €0
Option B
Hybrid structure
- Traditional mortgage
- €1,000,000
- Portfolio-backed facility 60% of the portfolio
- €1,200,000
- Investment portfolio
- Remains invested
In Option B the client can potentially fund the full €2,200,000 acquisition without selling investments, while preserving liquidity and maintaining market exposure.
Leave a buffer
€1,200,000 secured against €2,000,000 gives a starting portfolio LTV of 60%, below an illustrative c. 70% maximum. If the portfolio falls by 10%, it is worth €1,800,000 and the LTV rises to about 67%. Using less than the maximum, or adding liquidity, makes the structure more resilient.
Financing examples are illustrative and do not constitute an offer of credit. Availability depends on the client profile, collateral, property, jurisdiction and lender approval. Portfolio-backed lending may be illustrated at up to approximately 70% loan-to-value where suitable. Actual lending value depends on portfolio composition, concentration, volatility, liquidity, currency, jurisdiction and lender approval.
Market declines can trigger additional collateral requirements. Interest and transaction costs apply. Tax and legal advice should be obtained separately from independent professionals.
Investment perspective
Beyond the property
For international private clients, a €1m–€10m Marbella purchase should be considered within the wider balance sheet. Our objective is not to sell financial products, but to make sure the transaction fits the entire capital structure.
- How much capital should remain liquid?
- Should investments be sold or pledged?
- What is the appropriate debt level?
- What happens if markets fall?
- What is the impact of currency exposure?
- How does the property fit alongside listed investments and private markets?
Investor link
Property is only one part of the balance sheet.
Marbella Property Advisory can coordinate with DA Wealth Solutions for clients who want to structure their property acquisition alongside their wider investment portfolio. Suitable private clients may wish to:
- Keep portfolios invested rather than selling them for a property purchase
- Use portfolio-backed financing where appropriate
- Preserve liquidity
- Review wider asset allocation and capital structure
Marbella Property Advisory
Property sourcing, analysis, negotiation and acquisition coordination.
DA Wealth Solutions
A separate wealth and investment advisory business.
Marbella Property Advisory and DA Wealth Solutions are separate businesses. DELBARGE REAL ESTATE, S.L. does not provide regulated investment or credit services; any investment or credit advice is provided separately by appropriately authorised firms. Financing examples are illustrative and do not constitute an offer of credit. Availability depends on the client profile, collateral, property, jurisdiction and lender approval.
Financing guides
Spain, Costa del Sol and Marbella financing
- Property financing · SpainFinancing property in Spain without automatically selling your investmentsHow international buyers finance property in Spain: Spanish mortgages, portfolio-backed (Lombard) lending and hybrid structures that can fund 100% of the acquisition.
- Property financing · Costa del SolCosta del Sol property financing, structured around your balance sheetFinancing a villa or apartment on the Costa del Sol: Spanish mortgages, portfolio-backed lending and hybrid structures for international buyers from Estepona to Benalmádena.
- Property financing · MarbellaMarbella property financing without selling your investmentsFinancing a Marbella villa or second home: mortgages, portfolio-backed (Lombard) lending and hybrid structures that can fund 100% of the acquisition.
- Portfolio-Backed Property FinancingPortfolio-backed property financing in SpainHow portfolio-backed (securities-backed, Lombard) lending works for Spanish property: illustrative 70% LTV, costs, risks and how it combines with a mortgage.
- Non-resident financing · SpainNon-resident property financing in SpainHow non-residents finance property in Spain: Spanish mortgages, documentation, NIE and bank accounts, and portfolio-backed alternatives.
- Second home financing · SpainFinancing a second home in SpainHow to finance a second home in Marbella or on the Costa del Sol: mortgage, portfolio-backed lending, hybrid structures and full-acquisition funding.
- Lombard lending · SpainLombard loans for Spanish propertyUsing a Lombard loan to buy property in Spain: how it works, illustrative 70% LTV, margin-call risk, currency risk and combining it with a Spanish mortgage.
Private Access
Discuss the capital structure
Share an outline of your budget, timing and the approximate size of your liquid portfolio. We will set out the realistic options before you commit to a property. No bank documents are needed at this stage.