Tenerife property: Generational handover planned, €1,386,000 loan in Puerto de la Cruz
A couple from Freiburg had known Tenerife as a holiday destination for many years. While the south of the island was the focus at first, they were later captivated by Puerto de la Cruz with its botanical gardens, established old town and pleasant year-round climate in the north.
Why did the buyers of the villa in Puerto de la Cruz take a loan and keep part of their assets invested?
Many buyers deliberately keep part of their assets invested while preserving sufficient liquidity. In addition, larger measures are usually easier to realise right after purchase than during later use. We arrange the financing and approach 30+ banks per case. The first call is free.
Key figures: €1,980,000 purchase price, €1,386,000 loan
- Purchase price: 1,980,000 €
- Financing required: 1,386,000 €
- Equity: 1,016,400 €
Anonymised case figure · not a binding statement for other projects · §34i GewO
A home meant to grow with the family's plans
When they viewed a generous villa with a sea view in a quiet residential setting, it quickly became clear that this property was not intended only for retirement. Their adult children, and later grandchildren, were also to spend time there regularly.
Securities portfolio stays, the villa gets financed: The buyer was a partner in an engineering firm; his wife ran a tax consultancy. Both were planning to reduce their professional activity gradually over the coming years.
Alongside a debt-free house in Germany, they had liquid funds and a broadly diversified securities portfolio. Even so, they did not want to invest all of their assets in the property.
€2,402,400 in total, €1,016,400 from own funds
The total investment was 2,402,400 €, with 1,016,400 € of equity and 1,386,000 € of financing required, which corresponded to around 70 % of the purchase price.
Purchase price: 1,980,000 €; Additional costs: 257,400 €; Renovation (energy efficiency, pool technology, kitchen and outdoor area): 165,000 €; Total investment: 2,402,400 €; Equity: 1,016,400 €; Financing required: 1,386,000 €.
The financing share corresponded to around 70 % of the purchase price.
Energy upgrades for year-round use of the villa: The villa was built to a high standard but was to be modernised for energy efficiency and better prepared for year-round use.
In addition, the buyers wanted a larger kitchen, more efficient pool technology, a photovoltaic system with battery storage and a covered terrace for the winter months.
Because the property was to be used within the family over the long term, sustainable planning was central.
Retirement and family succession built into the plan
Even before the contract was concluded, all modernisation measures were calculated by specialist companies and fully included in the total investment.
At the same time, the financing was not planned solely on the basis of the current income situation. Rather, considerations of later retirement and long-term succession of assets within the family were already included in the planning.
This created a financing that remains comfortably affordable even many years later.
Own funds for the fees, bank loan for the price
The financing was set at around 70 % of the purchase price.
The additional costs and a considerable share of equity were paid immediately from own funds.
All modernisation measures were already part of the original overall plan — covered from equity, not by the bank loan. After handover, all work could be implemented without delay.
Room for several generations, lower running costs: Today the family has a modernised villa that is used year-round and offers enough room for several generations.
Thanks to the early energy optimisation, ongoing running costs were also reduced.
Plan for future changes within the family
A home is often acquired for several decades. It is therefore worth considering not only today's needs but also future changes within the family early in the financing planning.
Puerto de la Cruz villa designed for several generations: Buying a villa in Puerto de la Cruz shows that property financing goes far beyond the purchase price itself. Anyone who combines long-term family planning, modernisation and asset structure creates the basis for a home that can meet the needs of several generations in the future too.
Similar cases by region and price band: Cases with a comparable region and price band — for context, not a promise of the same outcome.
Apartment in Santa Cruz de Tenerife — case report: Anonymised case from Tenerife: apartment in Santa Cruz de Tenerife. Mortgage financing for non-residents.
Frequently asked questions
What role does energy efficiency play for existing properties?
It is becoming increasingly important, as modern technology improves living comfort and can reduce running costs in the long term.
Which modernisation was planned for the villa in Puerto de la Cruz?
The buyers wanted a larger kitchen, more efficient pool technology, a photovoltaic system with battery storage and a covered terrace for the winter months. All modernisation measures were covered from equity, not by the bank loan.
How were retirement and succession considered in the financing of the villa in Puerto de la Cruz?
The financing was not planned solely on the basis of the current income situation. Considerations of later retirement and long-term succession of assets within the family were already included in the planning.
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.
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
Related pages
Practical case Mallorca: Charming finca near Santanyí
Modernisation planned in from the start
Practical case Mallorca: Family house in Alcúdia
When the sale of the previous property is part of the financing
Practical case Mallorca: Finca with guesthouse in Deià
Two generations realise their dream together
Exclusive villa in Costa Adeje — case report
Anonymised case from Tenerife: exclusive villa in Costa Adeje. Mortgage financing for non-residents.
Detached house in El Médano — case report
Anonymised case from Tenerife: detached house in El Médano. Mortgage financing for non-residents.
Apartment in Playa de las Américas — case report
Anonymised case from Tenerife: apartment in Playa de las Américas. Mortgage financing for non-residents.
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.