Buying in: Megeve, French Alps.
Property price: €2,799,000
Mortgage amount: €1,800,000
Mortgage type: Repayment
Mortgage term: 20 years
Interest rate: 1.35% Fixed
The client is a British citizen living in Singapore working for a major corporation focused on the grain and agricultural commodities. He was very interested in an off-plan apartment in Megeve, one of the most famous and fanciest ski resorts of the French Alps.
The profile of our client was excellent and stable, both professionally and financially with many liquid assets.. He was renting in Singapore as he was there only for professional reasons and wanted to invest somewhere with a high possibility of return.
The client was really focused on the overall cost of the mortgage while securing a long term loan at the best possible rate. The Loan to Value was not a main factor.
One of our main banking partners cannot finance Singapore residents purchasing an off-plan property (while they can for an existing building – it is all about the guarantees for them). We turned our sight to another bank whose lending scope is a bit wider. We offered our client a very attractive, low rate (1.35%) fixed over 20 years on a repayment (capital + interest) basis. In exchange, the client placed Assets Under Management (20% of the mortgage amount).
We had to apply first with the life insurance (‘’assurance deces’’) from the bank. However we ended up being allowed to check an insurance broker we work with quite a lot as the Bank Group insurance could not get the green light.
It took longer but the premium our client got at the end was worth it.
There have been more delays with the committee at the bank, the notaires (3 in total – client’s, developer’s and the bank’s).
With local banks, we can get excellent, cost-effective conditions but you have to be patient and be sure that the vendor (or the developer) understands the situation.