Latest transaction: €1,500,000 mortgage for a property in Combloux

Posted on 15 Sep 2023 in Transactions
Latest transaction: €1,500,000 mortgage for a property in Combloux
  • Buying in: Combloux
  • Property price: € 2,142,000
  • Loan amount: € 1,500,000
  • Mortgage type: Repayment*
  • Interest rate: 4.00%
  • LTV: 70%
  • Term: 20 years

The background

Our British client works for one of the biggest US banks with an excellent profile and high incomes. His goal was to take a mortgage in order to benefit from tax optimization (particularly avoid paying the French Property Wealth Tax called Impôt sur la Fortune Immobilière – ‘’IFI’’ and the expensive inheritance tax) and excellent conditions with a long-term, fixed rate. It makes so much sense applying for a French mortgage at the moment rather than purchasing the property in cash.

Our Approach

We were able to secure an advantageous rate of 4.00% (which is quite good in the current market) on a 70% LTV repayment mortgage.

During the construction of the property, the client would not start paying his capital: the bank is offering an interest only facility until the property is delivered.

We also added his children (over 18 years) as shareholders of the SARL de Famille to facilitate the tax optimisation. Some banks don’t accept children under 18 as shareholders or if they are over 18, they must be affordable. Fortunately this bank has no such criteria.

For tax optimisation, we can introduce you to an accountant in France as we cannot give any advice.

* The rate / the product may differ to what is currently offered since this mortgage has been agreed.

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