About the French Riviera Mortgage Market
There is currently an excellent availability of mortgage finance in the French Riviera. There is a great mix of lenders, interest rates are very competitive, and there is a real and demonstrable willingness to lend.
However, there are complexities to doing business there. The lenders are fragmented and are not all in France, especially those who are willing to lend larger amounts. There is a huge gulf between the ultra-prescriptive retail banks and the negotiable and creative private and international banks. The process can seem arduous and painstaking, especially when it comes to the detail, and there are occasional pockets of language, cultural and political turbulence which need to be overcome.
How much you can borrow, and on what terms, however, is usually very easy to ascertain; the key drivers are:
- Your disposable income – and how it is proven and presented
- Your wealth – worldwide, and how much you are willing to pledge, if any
- Tax – borrowing as much as possible is often better
- The ownership structure – things can take a little longer than in other locations
- Paperwork and process – we will help you prepare and manage the process – the more you can provide the better
- Your time frames – fast and easy are not always possible
We are experts in matching your situation to the correct lender and then working with that lender to perform within the time frames you need to work to. We know the key lenders personally, understand the process, and we have the knowledge and relationships to obtain the information we need, when we need it. We also speak ‘the language’ – metaphorically as well as literally.
We are utterly unfazed by international complexity, nationalities, histories or lending values. We have created some incredible loan structures from what has seemed like impossible scenarios and are completely committed to finishing a job to the highest standard.
Key product highlights are as follows:
- For development, up to 100% finance of all costs to the project – engineering, architecture, all other development costs, notaire fees, with as low as 20% assets under management (AUM) required. This is important for mitigating wealth tax
- A portion of AUM requirements can come from loan capital
- Loans are not only available in Euros but other currencies as well
- A range of products available; fixed rate, variable, tracker[EURIBOR], capped, more complex products – i.e. fixed-variable hybrids
- Rates can be fixed at 1.5% on interest only or even below
- Purchase, development, refinance, equity Release and bridging finance available
About The French Riviera property market
The French Riviera is the Mediterranean coastline of the southeast corner of France, and contains well-known seaside towns including Saint-Jean-Cap-Ferrat, Antibes, Cannes and Saint-Tropez. It has become one of the most popular locations for international buyers looking to purchase French real estate and hosts a large part of the world’s super yacht fleet each year due to several marinas located along the coast. Nice is the largest city in the region and its vivid colors and clear light was famously captured by artists including Picasso and Matisse in the nineteenth and twentieth centuries.
The local property market is very strong given the popularity of the area among locals, foreigners and tourists alike. There are a wide range of French mortgages that high net worth clients looking for a large loan need to consider, from both international banks and French private banks.
Given the competitiveness of the French Riviera real estate market, lenders consider property here a ‘safe-bet’ and their valuations are usually in line with agent’s expectations, removing some of the challenges which come with property down-valuations during the mortgage process.
Clients looking to invest in real estate in the French Riviera also need to be aware of local legal and tax regulations. Most French real estate purchases typically carry a 7.5% legal fee and we always advise clients to seek advice from trusted consultants who have extensive experience with French tax structuring and legal processes before initiating the purchase of a property in France.
If you are interested in understanding more about a securing a mortgage on a property in the French Riviera and the process involved, then please get in touch.