Financing a townhouse in Lisbon – Combining historic architecture and modern living
A married couple of architects from Zurich were planning to move their centre of life entirely to Portugal. They were looking for a townhouse in a quiet residential district of Lisbon with a small courtyard, a roof terrace and enough room for a shared architecture practice on the ground floor.
At a glance
- Purchase price: 1.240.000 €
- Renovation: 198.000 €
- Financing required: 843.200 €
- Equity: 656.800 €
Anonymised case figure · not a binding statement for other projects · §34i GewO
Living permanently in one of Europe's most attractive capitals
Lisbon is one of the most popular cities in Portugal for German-speaking buyers who want to move their centre of life abroad permanently. Historic districts, modern infrastructure and a pleasant year-round climate make the capital especially attractive. Many townhouses combine traditional charm with excellent locations but require comprehensive modernisation before moving in.
Initial situation
A married couple of architects from Zurich were planning to move their centre of life entirely to Portugal. They were looking for a townhouse in a quiet residential district of Lisbon with a small courtyard, a roof terrace and enough room for a shared architecture practice on the ground floor. The property they found was convincing for its location and building fabric but no longer met today's living standards technically.
Financing overview
- Purchase price: 1.240.000 €
- Additional costs: 62.000 €
- Renovation: 198.000 €
- Total investment: 1.500.000 €
- Equity: 656.800 €
- Financing required: 843.200 €
The challenge
A considerable part of their assets was invested in portfolios over the long term. The buyers deliberately did not want to liquidate these investments entirely and at the same time wanted to complete all modernisation before moving in. The house was to be suitable from the start both as a private residence and for their professional activity.
Analysis
For historic townhouses in Lisbon, considering the purchase price alone is often not enough. Adaptation to today's living and working requirements plays an essential role in the actual financing requirement.
With financing of 68 % of the purchase price, the asset structure remained balanced. At the same time, all investments were transparently taken into account from the start.
Financing solution
The financing covered all intended measures:
- complete redesign of the kitchen
- modernisation of all bathrooms
- energy-efficient air conditioning
- creation of a generous home-office and meeting area
- structured network cabling
- intelligent building automation
- custom-made fitted wardrobes
- high-quality LED lighting throughout the house
All work was completed before moving in.
Outcome
Once the modernisation was complete, the townhouse could be occupied immediately. The buyers combined living and working under one roof and at the same time kept sufficient financial reserves for future projects and investments.
What other buyers can learn
For older townhouses in Lisbon in particular, the financing should not be aligned with the purchase price alone. Only the inclusion of additional costs and modernisation reveals the actual capital requirement and creates a reliable basis for long-term planning.
Frequently asked questions
Can the modernisation of historic townhouses be co-financed directly?
Why is financing used despite high own funds?
Which modernisations are especially typical for townhouses in Lisbon?
Is Lisbon suitable as a permanent residence?
Conclusion
A townhouse in Lisbon combines historic architecture with modern living comfort. Anyone who plans the purchase price, additional costs and all modernisation measures together from the start creates solid financing for a long-term centre of life in Portugal's capital.
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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 · 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
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