Buying in: Courchevel, Alps
Property price: €942,500
Mortgage amount: €659,400
Mortgage type: Repayment
Mortgage term: 20 years
Interest rate: 1.80% fixed
This client wanted to buy a new-build property in Courchevel which was part of a Residence de Tourisme development. Financing a Residence de Tourisme can be harder than a normal freehold property as some banks refuse to finance this type of property due to the enforced rental obligation.
The client originally wanted an interest-only mortgage so the rent could cover the mortgage repayment. However, interest-only mortgages are not always available for Residence de Tourisme developments, which was the case here. In addition, the client wanted to buy the property through a company to maximise his tax efficiency.
The client had to choose between an LTV of 70% over 20 years or 80% over 15 years. As he originally wanted as small a cost a month so the rent could cover the payments and the interest rates were identical, it was a no-brainer to pick the 70% LTV over 20 years option.