English
FrançaisAre you sure you are really having the best mortgage deal from your Irish bank?
Did you know that by re-mortgaging your existing Irish mortgage with a French mortgage you could drastically reduce your monthly repayments?
If you have a mortgage in Ireland and that you want to
- Repay it
- Refinance it
You can now do it with a French mortgage. Indeed French banks are offering you the opportunity to refinance or repay your Irish mortgage with a French mortgage based on your French property.
You will benefit from their competitive rates, from 2.80%, and from their excellent Loan-to-Value, up to 85% of the value of your French property. By switching your mortgage and getting a better interest rate you can save thousands of euros.
If you would like to know how much you can save, please feel free to contact me.
Mathilde
What would a French bank's attitude be to remortgaging properties where the leases aren't being paid ? I can't really believe that the risk management department of a bank would, in the middle of the 'credit crunch', and collapsing property values, have anything to do with leaseback properties
Dear Ognip,
I totally understand your concern about rents not being paid and remortgaging. However French banks base their remortgage not on the lease but on the value of the property. They will only take guaranty on the French property. French banks have been far less hit by the credit crunch than UK or Irish banks as they have always been more cautious.
We are still doing a lot of mortgages and remortgages on leaseback properties with French banks. Indeed it is now the key time to remortgage because since the beginning of the economic downturn French rates have been dramatically decreasing and now they are about to increase again.
If you have any question please feel free to contact me.
Mathilde
mathilde@athenamortgages.com
Mathilde
The value of a leasback property is totally dependent on the lease and the amount of rent. If you buy a leasback studio for 100,000 at a return of 4% then obviously your rent per annum is 4,000. If your leasback company manage (if you are stupid enough to accept it) to renegotiate this rent down to 3,500 then the new value of property is now 87,500. It should be noted that a net reduction in the INSEE index may reduce this even further depending on when you bought the property. The normal valuation process as applied to standard freehold properties does not apply as there is a direct correlation between the amount of rent and the value of the property. The advertising spreadsheets provided by estate agents highlighting a 5-10% increase in property per annum in the Cote D'AZur for example is totally misleading as this refers only to normal freehold properties. Leaseback owners must remember that if they allow themselves to be arm-twisted into accepting a lower rent then they are voluntarily reducing the value of their leaseback property.
I forgot to say.. misleading information regarding the valuation and appreciation of leaseback properties is one of the main factors why many of us are in this mess.