Leaseback Finance

Leaseback Facts || Leaseback Enquiry Form || Leaseback Listings || Leaseback Finance || Choosing a Leaseback Development || Filing French Tax Returns and TVA Formalities after Leaseback Purchase || Leaseback Re-sales || About Non Leaseback French Buy to Lets || Non Leaseback French Buy to Let Listings


Below are details of current mortgage/finance offers from our French mortgage broker.

Best Leaseback Mortgage Deals


Option 1 - 100% Mortgage with lowest possible deposit for a leaseback on which VAT is payable, applies to all developments..

* 100% of price including VAT, 100% of notaire's fees, bank and broker fees and 100% of the furniture
* 3.4% year one, "life assurance-only" payments until construction complete, then 3 months' Euribor + 1.7%
* No early repayment penalty after five years
* The bank will require you to transfer savings to them equal to 4% of price +and the VAT refund
* This will yield 4% p.a.

Option 2 - 100% Mortgage with lowest possible deposit for a leaseback, on which VAT is NOT payable, applies to all resorts.

* 100% of price including VAT +100% of notaire's fee, but nothing for furniture.
* Either: 2.7% interest-only until construction complete, then variable at 3 months Euribor + 1.3%; no early repayment fee.
* Or: 3.45% interest only until construction complete, then variable at 3 month's Euribor +1.5%, capped at 5.45% over 20 years; early repayment fee 1.7%.
* The bank will want you to transfer savings to them, equal to 10% of the amount you have borrowed for a period of 10 years. These will yield 4% per annum tax free.

Option 3 - 80% Mortgage + furniture, selected resorts (homeowners only).

* 80% of price including VAT. Interest is charged at 2.95% interest-only until construction complete, then at 1.2% above 3 months Euribor. Monthly payment amount will remain fixed throughout the loan.
* Early repayment penalty is 1.7% of amount pre-paid. No penalty after 5 years.
* 100% of VAT to be repaid to bank upon receipt from government. At this point your income is more or less equal to your monthly loan payment.
* For homeowners buying in resorts approved in advance by the lender only.

Option 4 – 80% Mortgage, applies to all resorts.

* 80% of price including VAT + 80% of notaire's fee, nothing for furniture.
* Either: 2.7% interest-only until construction complete, then variable at 3 months Euribor + 1.3%; no early repayment fee.
* Or: 3.45% interest-only until construction complete, then variable at 3 month's Euribor +1.5%, capped at 5.45% over 20 years; early repayment fee 1.7%.
* The bank will want you to transfer savings to them, equal to 5% of the amount you have borrowed for a period of 10 years. This will yield 4% per annum tax free.

Option 5 – 70% Mortgage-lowest rate available in the market for a leaseback deal, applies to all resorts.

* 70% of net-of-VAT price excluding furniture.
* Either: 2.5% year one, then 12 month Euribor + 1.25% over 20 years. No early repayment penalty on anniversary date.
* Or: 2.95% year one, then 12 month Euribor + 1.25% over 20 years, capped at 4.95% for 20 years. Early repayment penalty 1.5% of amount prepaid.
* During the first year of construction, this bank will allow any interest payments to be added to the total sum owed (i.e. interest is accrued but not paid during the first year). Thereafter, interest-only repayments are required in year two continuing until you actually receive the rent.
* 15 years maximum duration.

*Euribor = Euro Interbank Offered Rate (this is the "base rate" for the Euro); the rate at which euro interbank term deposits within the euro zone are offered by one prime bank to another prime bank.

If you would like more information or have any questions please contact our leaseback desk

Rob Thorne of the French Property Company Ltd


French property:
Join our newsletter:
Contact information:
Email: rob@southernfrance.com
Telephone: Fr 0467 24 53 59
Fax: FR 0826421562

www.moving-to-france.com