Second home purchase, Alpes Maritimes - 3.500.000€ purchase price

UK Based client looking to purchase a 3.5m property in France.

 

What was needed?

After having met with the client and understood what he was looking to do here in France and better understand his personal financial situation I approached both French retails banks capable of looking at a file of this size and Private banks in Monaco with whom we have good working relations.

What was the challenge?

We were able to justify that client profile was interesting enough, with a good potential for developing the future Private banking relationship, and we managed to convince the Private banks to want to lend to our client. We approached in total 9 different banks offering both capital repayment mortgages and Interest only mortgage options in order to have a good comparison of rates and differing AUMs requested.

The HB Mortgages Solution

The terms that the client decided best suited his personal situation and needs were extremely competitive, the loan amount was for 3.500.000€ on and Interest only mortgage over a ten year period (which is rare as banks tend to offer 5 year terms which are then renewed) with a variable rate based on the euribor 3 month + just 1.7% margin. The bank requested 50% AUM (Assets under management) to be held with them.

Due to the client being UK based he was also keen to have euros instead of GBP invested against his euro loan and the uncertainty of the Brexit effect on Forex, this was a good way for the client to minimize his FX risk on the loan in euros.

So, if you have any clients looking to purchase here in France we would be happy to assist them in trying to obtain finance. Please get in touch and we would be happy to assist.

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Capped Rate Mortgages

Capped Rate Mortgages are interesting because the variable rates are very low at the moment.

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Fixed Rate Mortgages

Fixed Rate Mortgages are very interesting in France as the rate is often fixed for the entire duration of the loan, so up to 25 years.

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Variable Rate Mortgages

Variable rate mortgages are based on Libor 3 months or 12 months plus the banks margin.

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Interest Only Mortgages

The purpose of this investment is to acquire interest and serve to repay the outstanding capital at the term of the loan.

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Capital Repayment Mortgages

Capital Repayment Mortgages are the main type of loan offered by banks in France where you are repaying both capital and interest from the start of the loan.

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'HB Mortgages' is a trading name of 'HB Property S.A.S'. 'HB Property S.A.S' as comme activites, achat, vente, location et gestion de bien immobilieres, courtage en operations de banque et services de paiement. Immatriculation au R.C.S Antibes ‘831 714 761’. 'HB Property S.A.S' est inscrit a L'Orias le Registre unique des Intermédiaires en Assurance, Banque et Finance sous le numéro d’immatriculation '18005964'. Carte professionnelle 'Transactions sur immeubles et fonds de commerce' (Gestion Immobilière) numéro '0605 2018 000 036 819' délivrée par la CCI de Nice Côte d’Azur. TVA Intracommunautaire FR 06831714761.