It appears that Prince Harry faced challenges securing a mortgage for the Montecito Mansion in Los Angeles, leading them to opt for rental.
Reports suggest they applied for a 9.5 million mortgage, with Harry being the primary applicant. However, he might have been rejected due to the loan amount exceeding four times his annual income. The pre-approval process and property details, including its dated condition and mudslide risk, raise concerns.
The Olive Garden, as the property is known, has been on the market for over five years, pocket-listed for two, with no takers. Its outdated decor, maintenance issues, and location challenges have deterred potential buyers.
The house's equity for borrowing remains uncertain, with a property tax appraisal of $12 million but potentially valued higher by other sources. However, the Sussexes lack a clear, provable income source to secure substantial loans.
The option of borrowing against the Olive Garden's equity seems unlikely to cover the costs of a new posh home. Even with a conservative appraisal, they might have limited funds available through home equity. Given their financial situation and security costs, obtaining a significant loan appears challenging.
Private borrowing, pledging assets, or utilizing any remaining funds in Harry's trust fund may be their only recourse. The couple seems to be navigating financial constraints and an uncertain housing situation.
