Latest News: French leaseback system offers options for pensions, 20th July 2008
Irish investors continue love affair with French investment, 2nd March 2008
French leaseback property is our speciality. Springvale Overseas Properties also offer superb non-leaseback properties throughout France.
Springvale Overseas Properties pride ourselves on providing a 1st class purchase and mortgage service, having carefully selected the most prestigious developers and management companies in France to offer our clients exceptional real estate.
French Mortgages
(with Crédit Immobilier de France)
There are two choices for a French mortgage:
- Capital + Interest (over 10, 15, 20 or 25 years): You repay both capital and interest. At the end of the mortgage term you have nothing left to pay.
- Interest only (over 15 years): You only repay the interest. At the end of the term you still have the capital (amount you borrowed) to repay.
The rate of interest will depend on the percentage of value you want to borrow and the length of the loan (the rate will be less if you borrow a lower percentage and for a shorter time)
French Mortgages are typically 80% of the property value.
On leaseback you can borrow 100%, here's how it works:
- You have to open a life assurance policy into which you pay 10 % of the loan amount and approx. 50% of the VAT refund into this policy. (For example, if you want to buy a property that costs €200,000 you place €20,000 (10%) + €20000 (from the VAT refund). So it's €40,000. This is an investment and is yours at the end of the term of the loan.
- When you apply for your French mortgage the bank will also open a bank account for you.
- The interest on your French mortgage can be written off against your rental income meaning you usually don't have income tax to pay in either France or Ireland!!
- Interest rates in France are similar to Ireland as French mortgages are also linked to the European Central Bank base rate which at time of writing is 4%.
Springvale Overseas Properties | French Leaseback
