High-net-worth Brit funds a luxury hillside home

James, a pseudonym for a 52‑year‑old London-based private equity partner, wanted to acquire a flagship property on the Costa del Sol. He was looking for a statement residence that reflected his success, offered privacy, and provided a base for family holidays. After viewing several estates, he found a hillside villa overlooking the Mediterranean near Benahavís. The property, listed at €5.2 million, featured seven bedrooms, expansive terraces, a wine cellar, and landscaped gardens. Although James could have bought the house outright, he preferred to keep capital invested in his fund and to use some financing to optimise his wealth strategy. He also wanted to establish a private banking relationship with a Spanish institution.

James’s high net worth gave him negotiating power, but his financial situation was complex. His income included management fees, carried interest from private equity investments, and dividends from investments in listed companies. He also had multiple holdings across jurisdictions, making documentation extensive. Moreover, banks often require additional due diligence for politically exposed persons (PEPs) or high-net-worth individuals due to international regulations aimed at preventing money laundering. James needed a partner to organise and present his financial life in a way that lenders could digest.

Zerodown was recommended by James’s tax adviser. He completed the pre-check form, indicating his budget, asset base, and desire for a loan. Within 24 hours, Sarah from Zerodown’s high-net-worth team contacted him. She outlined that private banks in Spain and beyond offer mortgages to wealthy individuals if they bring assets under management or demonstrate substantial income. Sarah explained that the bank might suggest pledging some of his investment portfolio as collateral or placing a portion of his assets with their wealth management arm. James was open to this, as he viewed it as an opportunity to diversify banking relationships.

To prepare the file, James compiled an extensive dossier. He provided his private equity firm’s audited financial statements, documents showing the distribution schedule for his carried interest, and personal tax returns. He presented statements from his investment portfolio, including details of shares, bonds, and hedge fund positions. Zerodown summarised these holdings in a concise net worth statement, highlighting liquidity and diversification. Given that James was a high-profile individual, Sarah also advised including a letter affirming his compliance with anti-money-laundering regulations, signed by his UK banker.

While James’s documentation was assembled, he revisited the hillside villa and negotiated terms with the seller. He agreed on a purchase price of €5 million, subject to obtaining financing. Because of the property’s value and his wealth, he expected favourable lending terms but wanted to ensure the bank recognised the sophistication of his financial profile. Sarah arranged introductions to two private banks: one Spanish, one international with a presence in Spain. Both banks had private client desks dedicated to high‑net‑worth individuals.

The banks proposed different structures. The Spanish bank offered a mortgage covering most of the purchase price at a competitive variable rate, conditional on James transferring a portion of his investment portfolio to their wealth management division. They would then manage these assets and use them as a form of security for the loan. The international bank proposed an interest-only mortgage for a large portion of the price at a fixed, low rate, contingent on James placing a certain amount of assets under their management. The idea of keeping monthly payments low appealed to James, given his irregular income from carried interest distributions. He was comfortable with assets under management because he intended to diversify his banking relationships anyway.

Sarah guided James through the pros and cons of each offer. She emphasised the need to understand fee structures, performance reporting, and service levels with any wealth management arrangement. She also explained the tax implications of pledging assets and the potential impact on his overall investment strategy. After consulting with his financial adviser, James decided to proceed with the international bank’s offer. The interest-only structure allowed him to maintain liquidity, and the fixed rate provided certainty. He agreed to transfer a portion of his portfolio to the bank, with the understanding that he could rebalance his assets in the future.

The underwriting process involved a deep dive into James’s financial history. The bank’s compliance team requested additional documentation on his source of wealth, including the origins of his private equity investments and distributions. They also needed verification that he was not a politically exposed person and required a PEP declaration. Sarah coordinated the collection of these documents and liaised with James’s law firm to supply the necessary certifications. An independent valuation of the villa was commissioned, verifying that the property’s value supported the loan amount.

Once underwriting was complete, the bank issued a binding offer. The mortgage would cover a large portion of the purchase price, with the rest financed by James. The bank’s conditions included maintaining a certain minimum balance with their wealth management division and agreeing to periodic portfolio reviews. James accepted the terms. He worked with a legal team to draft the mortgage deed and to ensure that the asset pledge documentation protected his interests. He also consulted with his tax advisers on the implications of the new banking relationship, including any reporting requirements.

Completion took place at a notary in Marbella. James signed the purchase deed, the mortgage deed, and the asset pledge agreement. The bank transferred funds to the seller, and James transferred the balance. The process went smoothly, aided by translation services provided by Zerodown’s legal partner. James took possession of the villa, relishing the privacy and the panoramic views over the Costa del Sol.

Reflecting on the journey, James acknowledged that even with significant resources, navigating international mortgages is not simple. The involvement of multiple jurisdictions, large sums, and regulatory scrutiny required specialised knowledge. Zerodown’s role in coordinating with private banks, summarising complex financial information, and aligning the terms with his wealth strategy was invaluable. The ability to put down a smaller portion of the purchase price allowed James to keep capital working in his fund. He now uses the villa as both a holiday retreat and a location for discreet meetings with clients and colleagues, confident that his financing arrangement aligns with his long-term goals.

After taking possession of the villa, James began the process of integrating the property into his broader lifestyle. He worked with an architect to update some of the home’s interiors, adding a private gym, an office that could host video conferences with his partners in London and New York, and a cinema room for family entertainment. The architect sourced materials from local artisans and worked with contractors known for their discretion. James also employed a property manager who oversaw everything from pool maintenance to security systems. The manager liaised with household staff and a gardener, ensuring that the estate remained in pristine condition whether James was there or not.

In terms of the mortgage, the interest-only structure meant that James only paid interest each month, with the principal due at the end of the term or in lump sums when he chose. This allowed him to keep a significant portion of his wealth invested in private equity projects, potentially yielding higher returns than the mortgage interest rate. Periodically, he met with his private banker to review the performance of the assets under management and to discuss the balance between debt and investments. This ongoing dialogue ensured that the mortgage continued to serve his financial strategy rather than constrain it.

James also leveraged the villa for philanthropic and networking purposes. He hosted fundraising dinners for a charity supporting educational initiatives in Spain, inviting local business leaders and fellow investors. These events strengthened his presence in the region’s social circles and reinforced his commitment to giving back. He also arranged offsites for his firm’s partners and portfolio company CEOs, providing a relaxed environment to discuss strategy and foster relationships. By utilising the villa as a venue for both personal and professional gatherings, James maximised the property’s value beyond a simple residence.

As the years passed, James considered the possibility of acquiring additional assets in Spain or relocating permanently in retirement. The strong relationship with his private bank made him confident that future financing needs would be addressed smoothly. He also contemplated passing the villa to his children, aware that international inheritance laws and tax considerations would require careful planning. With Zerodown’s support, he stayed informed about regulatory changes and potential refinancing options. Ultimately, James viewed the hillside villa not just as an investment or status symbol, but as a strategic asset woven into the fabric of his family and professional life. The experience reinforced his belief in surrounding himself with experts when making cross-border financial decisions.