Mortgages can be obtained for the purchase of new or existing properties, Gites and properties on Leaseback schemes.

French lenders will not consider lending to UK companies but it is possible to create a French company expressly for the purchase of a property.  This is called an SCI.  This type of purchase may be advantageous for groups buying together and can minimise French inheritance issues.  However, we do recommend you seek legal and tax advice on this matter.

For renovation and construction loans, estimates must be provided by French registered builders at the time of application.  In the case of construction loans, more detailed information will be required. Funds will be released by the lender directly to your builders following submission of invoices.

Capital raising is available on your property in France and the amount you can borrow will be determined by a valuation arranged by the lender.  It is also possible to raise funds on your French property to fully redeem your UK mortgage as well as any personal loans.

Remortgaging is available.  However, this will incur costs both at the Notaire’s office and with the new lender.  We recommend that you check with your existing lender if any penalties will be payable for cancelling your existing mortgage and corresponding land registry deed.

Bridging finance is available between two French properties.

All mortgages are in Euros and will be secured on your French property.  Mortgages are full status and proof of income and outgoings will be required.

The maximum loan to value available is 100% of the net purchase price of the property (excluding notary fees) for loans of up to € 350,000 and 90% for gross purchase price (inluding estate agency fees) for all larger loans.

French lenders assess eligibility on the applicant's capacity to repay the loan.  As a guideline, your existing monthly outgoings and the repayment on your French loan should not exceed 35% of your gross monthly income.  A percentage of rental and investment income can also be considered.  Mortgage, rent, personal loans and maintenance commitments are considered as outgoings.

Bank’s arrangement fee – typically 1% of the loan amount up to a maximum of €2,000.  Should the lender wish to carry out a valuation, this will be covered by the arrangement fee.  The fee will be deducted by the lender from your French bank account following completion.

Estate agent’s fees - these can be included in the loan amount.

Notaire’s Fees – your Notaire will provide you with a breakdown of fees payable once a sales agreement has been signed.  If you take out a French mortgage at the time of purchase or at a later stage, a further cost will be passed on to you by your Notaire for registering the mortgage with the land registry.

Baydonhill charges a non-refundable administration fee of £250 to prepare, package and facilitate your mortgage application.

We recommend that professional legal & tax advice should be sought to protect your own interests.