Practical case Mallorca: Charming finca near Santanyí – Modernisation planned in from the start
The family of four had a secure income from two permanent employment relationships and saved equity. As the property was to be used first as a holiday residence and later become the permanent centre of life, durable, plannable financing played a decisive role.
At a glance
- Purchase price: 760.000 €
- Renovation: 85.000 €
- Financing required: 532.000 €
- Equity: 411.800 €
Anonymised case figure · not a binding statement for other projects · §34i GewO
A place with character instead of an off-the-shelf property
A family from Switzerland had spent their summers on Mallorca for many years. At some point the wish matured to no longer rent holiday homes but to own their own property. The choice deliberately fell not on a new build but on a traditional finca in the surroundings of Santanyí – with a natural-stone façade, old trees and a lot of potential.
The house was well-kept but no longer met today's requirements technically and energetically. The modernisation was therefore to begin directly after the acquisition.
Initial situation
The family of four had a secure income from two permanent employment relationships and saved equity. As the property was to be used first as a holiday residence and later become the permanent centre of life, durable, plannable financing played a decisive role.
Quotes for the planned renovation measures were obtained already before the purchase so the total costs could be calculated realistically.
Financing overview
- Purchase price: 760.000 €
- Additional costs: 98.800 €
- Renovation: 85.000 €
- Total investment: 943.800 €
- Equity: 411.800 €
- Financing required: 532.000 €
The financing share thus corresponded to around 70 % of the purchase price.
The challenge
The actual difficulty lay not in buying the finca but in planning in all modernisation measures early. Alongside new heating and air-conditioning technology, the windows were to be renewed, two bathrooms modernised and parts of the outdoor areas reworked.
The family wanted to avoid having to raise capital again a few months after the purchase.
Analysis
Before the financing planning, all planned work was compiled in detail and backed with realistic costs. This meant the actual capital requirement could be reliably determined already before the notary appointment.
At the same time, care was taken to ensure that sufficient financial reserves still remained after all work was completed.
The financing was therefore oriented not exclusively to the purchase price but to the entire investment.
Financing solution
The additional costs were borne entirely from own funds.
A further part of the equity flowed into the acquisition, while the financing covered around 70 % of the purchase price.
The planned modernisation costs were included in the overall planning from the start and were available immediately after the transfer of ownership. This meant all work could be carried out without delay.
Outcome
Just a few months after the purchase, the finca presented itself technically up to date, without losing its original Mallorcan character.
As all investments had been taken into account from the start, the financial planning remained stable and traceable even during the conversion phase.
What other buyers can learn
Older properties on Mallorca in particular are often convincing for their location, plot and charm. At the same time, necessary renovations should be realistically calculated already before the purchase. Anyone who takes these costs into account only later risks unnecessary financial pressure and additional organisational effort.
Frequently asked questions
Why should modernisation costs be calculated before the purchase?
Are older fincas on Mallorca generally a bad choice?
How high should the financial reserve be after the purchase?
Conclusion
Buying a finca in Santanyí shows that successful property financing goes far beyond the actual purchase price. If modernisation, additional costs and personal reserves are realistically planned in from the start, financing emerges that offers security over the long term too and places the dream of life on Mallorca on a solid foundation.
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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