Latest transaction: €520,000 for a property in Morzine

Posted on 15 Jul 2020 in Transactions
Latest transaction: €520,000 for a property in Morzine
  • Buying in: Morzine
  • Property price: €800,00
  • Loan Amount: €520,000
  • Mortgage Type: Repayment
  • Mortgage Term: 10 years
  • Interest Rate: 1.25% fixed for the duration of the loan
  • Loan-to-value: 65%

The background:

Clients come to us at various stages of the purchase process and it’s rather common to speak to someone who has been looking at buying a property in France for years. This real estate investor and his wife came close to pulling the trigger many times but were unable to proceed because banks did not want to give them the finance. 

Our approach:

When they approached FPF, their finance was more straightforward, having rearranged their portfolio of 35 properties into 5 company vehicles. This meant less paperwork because we could proceed with the accounts instead of documents on each individual property. Nevertheless, their situation remained complex for the average underwriters due to income sources from 2 different countries. 

Everything was looking good and we were days away from getting the credit committee’s approval until politics got in the way. With the Brexit situation peaking in Jan 2020 the bank decided to withdraw all applications from UK borrowers. This left us in a very precarious situation with visibly no other lending solutions for the clients but luckily this decision was reverted about a month later. We got the mortgage offer printed and the client could sign the deed of sale with a power of attorney, just when the lockdown was being put in place.

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