Cross-Border Swiss Franc Mortgage for Purchase and Rebuild

An international high-net-worth client approached me seeking finance for the acquisition of a residential property in Switzerland. The client intended to acquire the property and undertake a substantial redevelopment project. The objective was to secure financing that could support both the acquisition and redevelopment while aligning with broader financial and tax planning objectives.

The transaction involved multiple layers of complexity. The client earned income in US dollars, held substantial liquid assets, and required borrowing secured against a Swiss asset in Swiss francs. Swiss franc-denominated debt was preferred due to the lower cost of borrowing relative to alternative currencies, alongside wider tax and wealth planning considerations.

Cross-border transactions of this nature are highly specialised. The case involved international income, foreign currency borrowing, property acquisition, and a major redevelopment strategy, all of which significantly reduced the pool of lenders able to participate. Many lenders are cautious when underwriting multiple layers of complexity within a single transaction, particularly where redevelopment risk forms part of the overall structure.

I identified a specialist lender capable of taking a holistic view of the client’s financial position, liquidity profile, and long-term objectives. A bespoke multi-stage financing structure was arranged, allowing the lender to support both the acquisition and redevelopment funding requirements under a single facility.

Financing was secured on highly competitive terms, with a structure designed to support both the redevelopment phase and long-term financing objectives. This provided the client with a clear funding strategy from acquisition through to completion of the redevelopment.

This case highlights the importance of specialist structuring in international finance. Where multiple jurisdictions, currencies, and asset strategies intersect, traditional lending solutions often fall short.