Financing an apartment in Funchal – Living permanently with an Atlantic view on Madeira
A retired civil engineer from Austria and his wife were looking for a spacious apartment in Funchal with a lift, a large terrace and short distances to shops and medical care. The chosen apartment offered an excellent location above the seafront promenade, but was to be modernised technically and aesthetically before moving in.
In short
What was this case about?
A retired civil engineer from Austria and his wife were looking for a spacious apartment in Funchal with a lift, a large terrace and short distances to shops and medical care. The chosen apartment offered an excellent location above the seafront promenade, but was to be modernised technically and aesthetically before moving in.
Can modernisation on Madeira be co-financed directly?
As a rule the Portuguese bank does not co-finance modernisation — it belongs in the overall plan: equity or raising capital against German property.
Why is not all of the equity used?
Many buyers want to keep financial reserves for retirement or unforeseen expenses and prefer not to tie all of their assets up in a property.
Who arranged this?
Perini Finance & Property — German-speaking, operating under the §34i GewO licence held by Olga Nikushkina, Portugal through a locally licensed intermediary; 15 to 20 banks approached per case. First call free; on completion 1 % of the loan amount.
€610,000 flat, €426,500 loan, €273,500 equity
- Purchase price: 610.000 €
- Renovation: 59.500 €
- Financing required: 426.500 €
- Equity: 273.500 €
Anonymised case figure · not a binding statement for other projects · §34i GewO
Property for sale in Funchal: the island capital with a high quality of life
Funchal is the economic and cultural heart of Madeira. Its year-round mild climate, excellent infrastructure and scenic setting make the island capital attractive for German-speaking buyers who want to move their centre of life permanently to Portugal. Apartments with a sea view and easy access to the city centre are in especially high demand.
A flat with lift and terrace above the seafront promenade
A retired civil engineer from Austria and his wife were looking for a spacious apartment in Funchal with a lift, a large terrace and short distances to shops and medical care. The chosen apartment offered an excellent location above the seafront promenade, but was to be modernised technically and aesthetically before moving in.
€700,000 in total: price, purchase costs, modernisation
- Purchase price: 610.000 €
- Additional costs: 30.500 €
- Renovation: 59.500 €
- Total investment: 700.000 €
- Equity: 273.500 €
- Financing required: 426.500 €
Part of the capital stays as a reserve for retirement
The couple had sufficient assets, but deliberately wanted to keep part of their capital as a financial reserve for retirement. At the same time, they wished to complete all modernisation work before the move so they could use the apartment permanently right away.
About 70% loan-to-value, part of the capital stays available
When buying property on Madeira, the purchase price alone should not be the only consideration. Acquisition costs and necessary modernisation also affect the actual capital requirement. An overall plan that takes every component into account — the bank loan for the purchase price, costs and modernisation from equity — creates a transparent and durable basis.
In this case the financing corresponded to around 70 % of the purchase price. This allowed the available equity to be used in a targeted way without tying up all liquidity.
Kitchen, bathrooms, cooling and shading before moving in
The overall plan was structured so that all planned work could be carried out immediately — from equity, not from the bank loan:
- complete renewal of the kitchen
- modernisation of both bathrooms
- energy-efficient air conditioning
- high-quality fitted wardrobes
- electric terrace shading
- modern LED lighting
- network cabling for home office and media technology
Once the work was completed, the apartment was fully ready to move into.
Life moved to Funchal, ready to live in with no further works
The couple moved their centre of life to Funchal as planned and were able to occupy the modernised apartment without further building work. At the same time, sufficient assets remained as a financial reserve. The overall plan covered the entire investment requirement from the outset — the bank loan for the purchase price, costs and modernisation from equity.
Costing the purchase as one whole project, not just the price
Anyone moving permanently to Madeira should treat the purchase as a complete project. When the purchase price, additional costs and modernisation are planned together, a reliable financing emerges without later top-up loans or unplanned extra costs.
Frequently asked
Can modernisation on Madeira be co-financed directly?
Why is not all of the equity used?
Which modernisations are especially common for apartments in Funchal?
Is Funchal suitable as a permanent residence?
Apartment in Funchal: solid financing for retirement on Madeira
An apartment in Funchal offers ideal conditions for permanent life on Madeira. Anyone who plans the entire investment realistically and takes all modernisation into account from the start creates a solid financial basis for a new chapter on the Atlantic.
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A similar situation in Portugal? Let's talk.
Every financing in Portugal is an individual case. In a free initial consultation I will tell you honestly what is feasible and which bank fits.
Book a free consultationAnonymised 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