Key facts:
- Client: EU National
- Property type: Villa in Saint-Tropez
- Property value: €16,000,000
- Loan amount: €11,000,000
- LTV: 68%
- Product: 1.5% fixed, 20 years
What do you get if you mix the best of authentic France with elegance, a good dose of ‘art de vivre à la française’ and a hint of bling? The answer can only be Saint-Tropez. Situated on the Mediterranean coast of south-eastern France, it remains one of the hottest property markets in the world. Despite it being a highly busy season, we were recently able to secure an attractive mortgage solution for an EU citizen.
CEO of a respectable financial institution, our client wished to acquire a €16million villa and was looking to borrow at least 50% of the property purchase price. On the surface, it may seem counterintuitive that someone who could afford to buy a property outright would choose to use a mortgage. But in reality, it often makes far more financial sense to borrow, with a multitude of benefits for high net worth individuals such as our client.
Whether you are an international property investor or wish to buy a second home or holiday property in France, getting a mortgage in France can make a lot of sense. With property in Saint-Tropez easily running to millions of euros, mortgages are commonplace for France's foreign property investors and second homeowners. Retaining liquidity in order to be able to pursue additional investment opportunities has paid off lucratively for many investors. From an investment perspective, therefore, it can be beneficial to borrow money to purchase a property at a very low interest rate rather than purchasing a property in cash at the cost of alternative opportunities. Mortgages can be particularly advantageous in cases where your property doesn’t necessarily produce an income. What is more, French mortgages for non-residents can also make a lot of sense from a tax planning perspective.
Here at Enness, we help international buyers find the best possible solution to their mortgage and finance needs. We cover all key HNW territories and facilitate lending worldwide to get you the best deal through our unparalleled network of lenders and contacts. Get in touch to discuss your scenario today!
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