English
FrançaisI have one leaseback property and I am in the process of purchasing a second .
The mortgage for the 2nd property has taken 6 months to arrange and the deal always was that it would also be for 100% of the value. My broker now tells me I can only get 90% as I already have one French mortgage. He has taken 6 months to tell me this .
Is this true?
Is there any companys that are recommended?
The French mortgage market works
very differently to the domestic market that British buyers are used to,
but it is becoming increasingly common for overseas investors to apply
for a UK-style pre-approval in France.
Most banks are reluctant to lend 100% on leasebacks as they are overpriced to start with and they have acquired a very bad reputation. Leaseback is basically synonym of scam.
The good news is if you can't raise the finance you should be able to withdraw from the deal and get your deposit back.
French banks are starting to get right on top of this now. It is nearly impossible to mortgage a property where the management company has defaulted on rents or there are people in the development that have defaulted due to non payment of rent.
Done some work on this during the summer and the banks are really doing their homework on the mangement companies. With the exception of the big names you do not stand a chance.
If the bank says no you are best to walk away and thank the banks for doing your homework for you!
Mutley
mutley40488.850474537