Practical case Mallorca: Historic townhouse in Sóller – Inheritance as part of the equity strategy
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.
In short
What was this case about?
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.
Can inherited assets be used as equity?
Yes. Own funds from an inheritance are often used for the acquisition and can significantly strengthen the financing.
Why were the modernisation costs taken into account before the purchase?
Because necessary work was to begin immediately after handover and later financing was to be avoided.
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.
€1.26m price, €882,000 loan, €145,000 for refurbishment
- 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
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.
Frequently asked
Can inherited assets be used as equity?
Why were the modernisation costs taken into account before the purchase?
Is a historic townhouse financially riskier than a new build?
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.
More cases on this theme
Practical case Costa Blanca: Villa in Jávea
When a gift eases the path to a home in Spain
Practical case Mallorca: Beachside apartment in Cala d'Or
A parental gift sensibly used as equity
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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