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Specialists for individuals and small businesses in:
French Tax Administration Services
French Tax Planning
UK Tax Administration Relating to French matters
French Tax Administration Services
French Tax Planning
UK Tax Administration Relating to French matters
French Mortgage Deal of the Week
FRENCH MORTGAGE DETAILS
EUROS
Repayment Mortgage 1 600 000
Fixed interest rate 1.30%
Mortgage payment pm 7 575
Estimated French life assurance pm 527
APRC 2.0%
Background
Our client found a French Chalet for 2950 000 net of VAT and his offer to purchase was accepted. The property was an investment being in a popular French sk-ing resort generating an estimated French rental income of E150 000 pa (E 12 500 pm). This size of the French mortgage results in him being able to offset the interest paid on the French mortgage against future French Wealth Tax and the low fixed interest rate of 1.30 % means that the mortage payment of E7575 pm plus life assurance is more than covered by the future French rental income.
In addition whilst all long term fixed French interest rates carry early redemption penalties equal to 6 months interest , capped at 3% of the outstanding mortgage capital , the bank agreed to waive all early redemption penalties, enabling our client to repay capital from excess rental income and future dividends when it suits him without any cost.
At outset due to the size of the mortgage , the bank requested a sum in excess of E500 000 to be placed in a mix of savings and shares . We were successful in obtaining the bank's agreement to reduce this to E350 000.
The APRC (annual percentage rate of charge) serves to illustrate the anticipated cost over the full term of the mortgage taking into account the following estimated costs:
Euros
The bank arrangement fee 8000
Charles hamer arrangement fee 12300
The mortgage regisration fee 6560
