Latest transaction: €1,000,000 mortgage for a property in Meribel
- Buying in: Meribel
- Property price: €1,235,000
- Loan amount: €1,000,000
- Mortgage type: Repayment *
- Interest rate: 5.80% fixed *
- LTV: 81%
- Term: 25 years
Two distinct families served as clients (2 sisters). This configuration is very uncommon at the moment, since banks seek for simpler transactions. They desired the greatest loan-to-value ratio possible due to the fact that their deposit was restricted by other investments / projects.
They chose to purchase and borrow via a French limited liability business SARL de Famille in order to take advantage of its many benefits (inheritance tax, income tax, capital gain tax – please seek legal advice for a SARL set up). Due to the fact that one of the clients had various businesses, things became a bit more challenging. The bank needed to ensure that the companies were healthy and would continue to operate as normal post COVID-19.
The transaction took almost 18 months to complete due to the delay in obtaining the financial guarantee of completion (GFA). This guarantee was needed by the bank to ensure that the development would be completed regardless of what occurs with the developer.
* The rate / the product may differ to what is currently offered since this mortgage has been agreed.