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French Leaseback Property MortgageObtaining a mortgage for a leaseback property in France is an easy process. Typically you'll be able to borrow 80% of the leaseback property's value over a 5 to 35 year period. In some cases, the French banks are able to offer 100% finance for a leaseback property purchase.Guaranteed rental income from your French leaseback may be used in your finance calculations. Your rental income is counted against the cost of the mortgage BEFORE the bank looks to your financial status to secure the rest of your borrowing. Overall this means that you can afford to apply for a larger mortgage amount than you might otherwise be able to do so for a standard (non-leaseback) property in France. French Mortgage RatesMortgage rates in France are based on the Euro Bank Inter Offered Rate (EURIBOR). This allows mortgage lenders in France to offer loans at between 1% and 2% below the standard mortgage rates in the UK. The exact mortgage rate depends upon whether you choose a fixed rate mortgage for your leaseback property, or a variable rate mortgage.Fixed rate mortgages provide you with an interest rate on your loan that remains static for the life of the loan. The interest rate is generally higher than on a variable rate mortgage, and so offers the least savings against a UK mortgage or remortgage on your home. Variable rate mortgages, as their name implies, offer borrowers a rate that moves in line with fluctuations in the Central European Bank rates. Generally, variable mortgages impart the biggest savings for leaseback property borrowers against UK finance. The rate however is always subject to change. Mortgage Costs for your French Leaseback InvestmentThe buyer is liable for bank fees and mortgage registration tax. These weigh in at around 1.7% to 2.5% of the amount borrowed. You will also have to pay stamp duty and notaires fees. For new build property - a category that applies to many of our leaseback investments - the total amount payable is around 4% to 5% of the property value.Mortgage OptionsA range of borrowing options are available for leaseback investors, including options that provide 95% and 100% finance. For more details please select your leaseback resort from our property directory. The full range of leaseback mortgages on offer are available through us when you buy a leaseback property in one of our qualifying leaseback resorts.Next:
Provence Leaseback Property
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