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FrançaisHi. The balance of our Mortgage stands around 26 to 27,000 Euro and we have 8 years left to run on it. I have asked the mortgage company to quote us a figure to pay this mortgage off 8 years early. They quote the whole balance (plus a little bit) to pay it off..........Surely they should be deducting 8 years worth of interest and life insurance premiums included in the 320 euro monthly repayments! Is this the case or am i barking up the wrong tree?????
They saw you coming... if it was a variable rate there is no ERC and you just have to pay back the capital remaining due (not the future interests).
If it is a fixed rate mortgage then you usually have a 3% ERC on the capital remaining due so about 810 euros extra in your case.
Another idea: selling your French leaseback and negotiate the write off of your debt with your French bank if the selling price is below the capital remaining due (it happened to some of our sellers who were getting only 1600 euros rent per year (unbelievable), so a selling price of about 20,000 euro net vendor... The banks prefer to take a loss rather than wasting more money through legal procedure which takes a long time in France. So you could walk away without the need to pay to sell your leaseback.