100% LTV (loan to value) Euros mortgages
For property purchases above € 300 000 mortgage
lenders in France are now willing to lend 100% of the
property value to foreign purchasers. This means that
no deposit is required which considerably reduces the
initial outlay for anyone looking at investing in a
French property. Legal fees, bank and brokers fees
are additional (3.5% approx).Contact us to find out
about these new mortgage opportunities on
enquiries@aplaceinfrance.co.uk
Raising a mortgage when buying off plan in France-
what you should know
Financing the purchase of an off plan property
French banks have full knowledge of the off plan
purchasing procedure and of the staged payments
specific to new build property. The new build
mortgage offers which they make are usually valid for
up to 9 months to take into account the building
schedule.
Mortgage quotations and guidance
Our UK brokers have dedicated English speaking
advisors. They will guide you through the range of
loans available to provide you with the best deals
available and total flexibility.
Monitoring of your mortgage application
Your mortgage advisor will liaise regularly with your
mortgage provider to ensure that your application is
processed within the time scale required in your
property reservation contract. Once the loan offer
has been accepted he will ensure that all the
relevant information is forwarded onto the French
Notaire for the preparation of the Deed of sale.
Signing a property reservation contract subject to
raising a loan
French law offers full protection to buyers who are
raising a loan to finance the purchase of their off
plan property. A dedicated section in the reservation
contract requires completion and signing, stating the
amount borrowed and confirming the time scale within
which the application must be processed and the offer
signed. This section which confirms the reservation
of the French property subject to raising a mortgage
is called a “Clause suspensive de pret”
and allows the buyer to withdraw and to get his full
deposit back should the application fail.
Our
recommendations
Whether you raise a mortgage in the UK or in France,
do make sure that you have an agreement in principle
from the bank before traveling to France to view your
selected locations.
Mortgage applications can take several weeks and, as
explained earlier, French property reservation
contracts have strict deadlines with regard to
mortgages. As a rule, the time limit to apply for a
mortgage and receive an offer is four weeks from the
date of signing the reservation contract. If the bank
has all the required information in advance it will
be able to confirm whether or not a mortgage can be
granted. This in turn will allow you to establish
your maximum budget and confidently reserve a
property when the right one is found knowing that
finances can be raised.
Your French property mortgage offer can then be
finalized and signed within the time limit provided
in the contract.
Request your free quote
|