In this new episode of Wealth Stories, we focus on international finance. In particular, the funding of a second home abroad.

Visit bil.com/internationalmortgage

A strategic investment

Whether that’s a fabulous Rivièra villa, a smart city apartment or a rambling, rural ‘escape from it all’ hideaway, everyone enjoys a change of scenery. But not everyone who purchases a second property is thinking solely of holidays - diversifying their real estate portfolio and enjoying a rental income are also strong ‘pull’ factors.

Whatever the goal, BIL is helping Luxembourg residents to finance second properties in Europe.

Considerations to take into account when searching for a home abroad

There are different ways to own a property abroad, from direct ownership to Special Purpose Vehicles. And a wide variety of reasons why people purchase second homes. This may impact on how you buy that property. There are tax implications of property bought abroad, and country-specific rules will apply. It’s important to be able to see the full financial and legal picture before purchase.

In a 2019 report published by ResearchGate.net Luxembourg was among the top five countries for second property ownership. Following a survey of 20 countries, Luxembourg, alongside Finland, Cyprus, Spain and Estonia, all reported levels of more than 20% second home ownership. Meanwhile, the average across Europe for households owning a second property sits at 15%. So, it seems a significant number of Luxembourg residents are already enjoying the benefit of property abroad.

BIL supporting your mortgage plan

BIL is able to help clients establish mortgages in 10 European countries:

• Belgium,
• Switzerland,
• Spain,
• Italy,
• France,
• UK,
• Germany,
• Netherland.

By tapping into our network of European subsidiaries, we have the infrastructure in place to actually take out loans abroad for our clients. This differs from other banks who tend to offer to secure your financial assets against a loan, we actually secure the loan on our clients’ behalf.

Private banker brings an in-depth knowledge of the field of international finance. Our role is to ensure that we deliver our Luxembourg- resident client a mortgage with advantageous conditions depending on each situation.

Tailor-made solutions

In order to get a really clear picture of the client’s needs, goals, financial position we start by gathering information. First, we look at the property itself. What are its characteristics, its age, whether it is a prime location or not and its condition? What level of renovation may be needed? That kind of thing.

Next, we examine the client’s financial situation. Is this purchase feasible with their financial profile? And then we review their personal situation. We want to know how this purchase fits into their life or business goals. What are they hoping to achieve by buying this real estate? This knowledge really helps form the basis of our tailored solutions. We know what you want to achieve, and we know why you want to achieve it.

Trust and transparency lie at the heart of our offering. We’re working together to find the best way to finance a client’s second residence. To find a solution that aligns with both their personal and financial circumstances. It’s the deep understanding we gain at the very start of the application that helps us deliver the best outcome.

At BIL we bring together a team of internal experts with specialist skills in key areas including credit structurers, wealth planners, lawyers and credit analysts. Each team is put together to reflect the client’s unique needs and each team is multi-lingual. The role of the private banker, is to put together the right team.

Visit bil.com/internationalmortgage or contact our private bankers for more information on establishing up an estate plan.