Practical case Lanzarote: Villa in Costa Teguise – High-quality living with long-term asset planning
The buyer was the managing partner of a family-run production company; his wife worked as an architect. Both had an above-average income and broadly diversified assets from property and securities.
At a glance
- Purchase price: 1.540.000 €
- Financing required: 1.078.000 €
- Equity: 827.200 €
Anonymised case figure · not a binding statement for other projects · §34i GewO
Not every decision for a property is a spontaneous affair of the heart
A couple from the Stuttgart region had visited various places on the Canary Islands over several years. While they initially preferred Tenerife, Lanzarote ultimately won them over with its distinctive landscape, calmer feel of life and high living quality.
Costa Teguise quickly became the favourite. The well-kept residential areas, the proximity to the sea and the good infrastructure made the place ideal for the planned permanent residence.
Initial situation
The buyer was the managing partner of a family-run production company; his wife worked as an architect. Both had an above-average income and broadly diversified assets from property and securities.
Despite sufficient liquidity, they deliberately did not want to finance the property purchase entirely from own funds.
Financing overview
- Purchase price: 1.540.000 €
- Additional costs: 200.200 €
- Renovation (photovoltaics, smart home, outdoor area and pool technology): 165.000 €
- Total investment: 1.905.200 €
- Equity: 827.200 €
- Financing required: 1.078.000 €
The financing share corresponded to around 70 % of the purchase price.
The challenge
The villa was equipped to a high standard but was to be brought up to date technically. Planned were intelligent building control, a powerful photovoltaic system with battery storage, the modernisation of the pool technology and a complete redesign of the outdoor lighting.
The buyers wanted to complete all work directly after the transfer of ownership so they could then use the house permanently without further building sites.
Analysis
Before the purchase, all investments were calculated together with specialist companies and included in the total investment.
In addition, a comprehensive review of the asset structure took place. It quickly became clear that a balanced use of equity was economically more sensible than full payment from liquid funds.
This kept enough reserves for further private and entrepreneurial decisions.
Financing solution
The financing was set at around 70 % of the purchase price.
The additional costs and a considerable share of equity were covered from own funds.
All modernisation measures were also fully integrated into the original financing plan. This meant all work could be carried out immediately after handover.
Outcome
Just a few months later, the villa fully matched the buyers' ideas.
Thanks to the energy modernisation, running costs were reduced while living comfort was significantly increased.
The existing asset structure remained almost unchanged and continued to offer sufficient financial flexibility.
What other buyers can learn
A high equity ratio does not necessarily mean that a property should be paid for entirely from own funds. A balanced combination of equity and financing is often the economically more sensible solution.
Frequently asked questions
Why was financing used despite high assets?
Why were all modernisations planned before the purchase?
Is Costa Teguise suitable for permanent living?
Conclusion
Buying a villa in Costa Teguise shows that well-considered property financing goes far beyond the purchase price itself. Anyone who sensibly combines modernisation, equity and long-term asset planning creates the basis for a permanent home on Lanzarote while preserving their financial flexibility.
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Modernisation planned in from the start
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When the sale of the previous property is part of the financing
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Two generations realise their dream together
To the case report →A similar situation in Spanien? Let's talk.
Every financing in Spanien 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 · Siegfried Perini, BAFA-notified for the cross-border activity of the owner Olga Nikushkina · §34i GewO · no tax or legal advice · no financing commitment; conditions depend on creditworthiness, loan-to-value and bank