Hugh Wade-Jones, MD of Enness Global talks about how things are changing regarding multiple homes for the High Net Worth community. Multiple homes once seen as luxuries are now very much viewed as a necessity by the HNW community.
There has been a huge spike in mortgage enquiries for the Riviera, by Parisians and Brits especially, as well as surging demand in UHNW hotspots such as Ibiza and St Bart's.
They have been seeing increased inquiries along the Riviera, in Spain, in Ibiza and even places as far away as some parts of the Bahamas. Traditionally areas which have been seen as luxurious second home or holiday home areas are now being seen very much as a necessity by the High Net Worth community now.
Post-pandemic, that's going to continue into the future. Probably the more long-term trend will be that of working away from the office for prolonged periods of time. Maybe not being based in city centres continually throughout the year and just leaving for holiday homes once or twice a year for periods of two or three weeks. but instead spending periods of two or three or four months a year at second properties (or third and fourth properties) that these clients and high net worth individuals own now. As a result the inquiries at lenders have gone through the roof for these properties.
Enness Global completed a 13.5 million euro mortgage in Spain on a beautiful property over 15 years fixed at just 1.1%. It was virtually free money. In the UK we also completed a loan of 18 million pounds at 65% loan-to-value on a five-year term at 1.15%. So virtually mirroring those low interest rates that we're seeing on the continent.