January 2017 – French Mortgage Transaction of the Month

Going against the grain of the seasons, this month’s French mortgage transaction of the month takes us away from the wintery alps, to the warmer climes of Dubai and Cannes.

This was the third purchase in the last year by our client, who is based in Dubai and has moved quickly to secure rates whilst they’re at their lowest.

Unlike the first two properties, which were in the Three Valleys ski resort of Méribel, this one was in sunny Cannes at a price of €1.8m with a 60% LTV securing a loan of €1.08m. This was over a 25 year fixed period on a repayment basis, with a rate of 2.45%.

We often speak to clients based in the Middle East who’ve had trouble accessing French property finance as banks sometimes feel less secure about lending to someone far away.

There’s a simple solution though – investing through an SARL. An SARL or Société à Responsibilité Limitée, is a limited liability company, particularly suited to small/medium family-run businesses. By starting an SARL you are creating an official company registered in the French tax system, which at the most basic level simply means that when a Bank sends you correspondence, they have an official address, not a personal one, that they can know 100% that correspondence will be delivered to. It is then the business owners responsibility to make sure they pick up their mail.

With this of course there is also the normal full due diligence carried out through the full application process.

For further information on buying French property through an SARL or French mortgages in general, please get in touch.