Mortgage Mallorca: inherited share as equity, €882,000 for a townhouse in Sóller
Anonymised case from Mallorca: historic townhouse in Sóller for €882,000 with an inherited share as equity. Mortgage financing for non-residents.
Can an inherited share as equity strengthen the financing of a townhouse in Sóller?
Yes. Own funds from an inheritance are often used for the acquisition and can significantly strengthen the financing. Here €520,000 of the €686,800 equity came from an inheritance. The loan was €882,000, about 70 percent of the €1,260,000 purchase price, and part of the inherited assets was deliberately kept as a long-term reserve.
In short
Necessary work was to begin immediately after handover, and later financing was to be avoided. Perini Finance & Property arranged the financing.
Work was to begin immediately after handover: Necessary work was to begin immediately after handover, and later financing was to be avoided.
Arranged by Perini Finance & Property: Perini Finance & Property — German-speaking, operating under the §34i GewO licence held by Olga Nikushkina, Portugal through a locally licensed intermediary; 30+ banks approached per case. First call free; on completion 1 % of the loan amount.
€1.26m price, €882,000 loan, €145,000 for refurbishment
The purchase price of the townhouse was 1,260,000 € and the renovation 145,000 €. The financing required was 882,000 € and the equity 686,800 €.
Purchase price: 1,260,000 €; Renovation: 145,000 €; Financing required: 882,000 €; Equity: 686,800 €.
Anonymised case figure · not a binding statement for other projects · §34i GewO
Typical, anonymised case. Names, places and individual financing figures have been adjusted to protect privacy. The process reflects a typical advisory situation for non-resident financing in Spain.
Property for sale in Sóller: a house with history instead of a new-build property: A couple from North Rhine-Westphalia had originally looked for a modern villa on the coast. During a viewing tour through the north-west of Mallorca, however, they discovered the special charm of Sóller. Narrow lanes, historic façades and life on the market square won them over more than any new-build development.
In the end they chose an elaborately preserved townhouse from the early 20th century with a courtyard, a roof terrace and a view of the surrounding mountains.
Sold an inherited share, the money goes to Mallorca
A few months earlier, the wife had inherited a property together with her siblings. After selling her share, equity was available that was to be used specifically for the purchase on Mallorca.
Both had secure incomes and planned initially to spend several months a year on the island. In the long term, the townhouse was to become their permanent residence.
€1.57m in total, €520,000 of it from the inheritance: Purchase price: 1,260,000 €; Additional costs: 163,800 €; Renovation: 145,000 €; Total investment: 1,568,800 €; Equity: 686,800 €; of which from inheritance: 520,000 €; Financing required: 882,000 €.
The financing share corresponded to around 70 % of the purchase price.
New building services, historic character kept: The building was in good structural condition, yet the building services, bathrooms and air conditioning were to be modernised. At the same time, it was important to fully preserve the historic character of the house.
In addition, the capital from the inheritance was to be used in a targeted way, without investing all available funds in the property.
How much of the inheritance goes in, how much stays
Already before the purchase, all planned measures were calculated together with specialist companies. This meant the modernisation costs could be realistically included in the total investment.
It was then examined which part of the inheritance should sensibly be used as equity and which financial reserves should be preserved for the future.
70 % loan, part of the inheritance kept as a reserve: The financing was built at around 70 % of the purchase price.
The additional costs and a considerable part of the purchase price were paid from own funds. The modernisation costs were fully taken into account from the start and available immediately after the transfer of ownership.
Part of the inherited assets was deliberately kept as a long-term reserve.
House fully modernised, the reserve still intact: Once the work was completed, the townhouse combined historic character with modern technology and a high level of living comfort.
The couple could take over the property without financial time pressure and at the same time keep part of the inherited assets as a liquidity reserve.
Use an inheritance selectively, not all at once
An inheritance often opens up new possibilities in a property purchase. Even so, not all of the assets have to be used. It is often more sensible to use equity in a targeted way and at the same time preserve financial reserves for future developments.
Historic townhouse in Sóller: inherited wealth put to good use: Buying a historic townhouse in Sóller shows how inherited assets can be sensibly integrated into a long-term financing strategy. Anyone who considers the purchase price, modernisation and liquidity reserves together creates a stable basis for acquiring a special property on Mallorca.
Similar cases by region and price band: Cases with a comparable region and price band — for context, not a promise of the same outcome.
Anonymised individual case, not a binding statement for other projects · Brokerage under the §34i GewO licence held by Olga Nikushkina (D-W-132-ZUCB-95); Siegfried Perini registered as directly involved person (§11a GewO) · no tax or legal advice · no financing commitment; conditions depend on creditworthiness, loan-to-value and bank
Villa in Pollensa — case report: Anonymised case from Mallorca: villa in Pollensa. Mortgage financing for non-residents.
Frequently asked questions
Is a historic townhouse financially riskier than a new build?
Not in principle. A careful inspection of the building's condition and a realistic calculation of possible modernisation measures are decisive.
What was to be modernised in the historic townhouse in Sóller?
The building was in good structural condition, yet the building services, bathrooms and air conditioning were to be modernised. At the same time, it was important to fully preserve the historic character of the house.
When were the modernisation costs for the townhouse in Sóller calculated?
Already before the purchase, all planned measures were calculated together with specialist companies. This meant the modernisation costs could be realistically included in the total investment.
A similar situation in Spain? Let's talk.
Every financing in Spain is an individual case. In a free initial consultation we will tell you honestly what is feasible and which bank fits.
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Content by Siegfried Perini — local brand representative since 2019, active in real estate since 1992, entered in the German intermediary register (§ 11a GewO) as a person directly involved in brokerage and advice. Point of contact for German-speaking buyers in Spain and Portugal. Brokerage by Olga Nikushkina, mortgage credit intermediary under § 34i German Trade Regulation (GewO); in Portugal through a locally licensed intermediary.