108% Mortgages For French Leasebacks

July 2, 2010 - PRLog -- French mortgage specialist, Athenamortgages.com (http://www.athenamortgages.com), expects the number of sales of French leaseback properties to boom following the announcement by several French lenders yesterday that they will be offering 100% of the price of the property and 100% of the stamp duty and taxes, which can be up to 8% of the property value. The number of French leaseback sales from top developers is predicted to soar within weeks.

Mortgages are now available on a new build French leaseback for 104% on both a repayment basis, from 2.6%, and interest-only basis from 3%. French banks will finance up to 108% for a renovated leaseback at the same rates. Some banks have increased the amount they will lend by 15% on certain French leaseback developments.

Interest in French leaseback property has been strong over the first six months of the year with many French leaseback developments selling out in record time. The number of clients searching for French leaseback mortgages increased by over 50% in the first half of 2010 compared to the second half of 2009. The number of new enquiries for mortgages for French leasebacks has remained stable in the past quarter with the number of people progressing their application increasing sharply in the last week since the Budget announcement.

UK investors have sometimes struggled to secure units in the face of strong competition for apartments from their French counterparts who have the added incentive of the Loi Scellier, a tax break from the French government that allows a portion of the value of the property to be offset against income tax liability.

John Busby, director, specialist French mortgage broker, Athenamortgages.com, comments:

“This is fantastic news for investors looking to buy a French leaseback. Not only are interest rates at historic lows and likely to remain so for some time, this higher level of loan to value means there is very little money to transfer to France to complete the purchase. With the pound now at a 19-month high against the Euro and set to improve further, conditions have never been better.”

“This is an unprecedented move that reflects the confidence of the French banks in the security of the investment and the developers. When you look at the return on investment for investors who have put very little money into a property purchase, even with minimal growth, the returns are impressive.”

“Developers I have spoken to expect demand for their leaseback properties to increase dramatically over the next few weeks as news of these finance products gets out. With a limited number of these finance deals available on some developments and the high levels of interest from French investors, investors will have to complete their mortgage applications quickly to avoid missing out either on the property or the mortgage.”


Athenamortgages.com

http//www.athenamortgages.com

Telephone London +44 (0) 207 471 4515

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Athenamortgages.com is the leading multilingual French mortgage broker for international buyers seeking French property finance and loans. Focusing exclusively on mortgages in France, Athenamortgages.com can provide expert knowledge of the current French mortgage best buys for second homes, investment property finance, remortgage and equity release loans.