Large French Mortgage for Middle Eastern National

• Client: Middle Eastern national and resident
• Property: Flat in central Paris valued at €5.4M
• Challenge: No EU presence, overseas residency and a three-week completion deadline
• Finance: 70% LTV, with 10% amortised over five years and the remainder on an interest-only basis
• AUM: €1.7M
• Interest rate: 1.17%

Arranging a high-value French mortgage for an international client can require a lender with experience of complex cross-border transactions. This was the case when Enness was approached by a Channel Island family office on behalf of a Middle Eastern national and resident looking to acquire a €5.4M property in central Paris.

The client was the chairman of one of the largest conglomerates in their country, with business interests spanning multiple sectors. The proposed acquisition was a high-value residential property in Paris, and the client required a substantial level of mortgage funding to complete the purchase.

The client’s international profile created a number of considerations for prospective lenders. They were resident outside the European Union and did not have an established presence within the EU. Their nationality and international financial circumstances also meant that the lender would need to undertake appropriate due diligence before approving the proposed finance.

There was also a particularly tight timeframe. The transaction needed to complete within three weeks, otherwise the client risked losing the deposit on the property. This meant that identifying an appropriate lender was only one part of the challenge; the application also needed to progress efficiently through underwriting and completion.

Given the size of the transaction and the client’s international profile, Enness focused on lenders with experience in high-value French property finance and international borrowers. The objective was to structure the mortgage around the client’s circumstances while meeting the required completion deadline.

Following discussions with the appropriate lender, Enness secured a French mortgage for a non-resident at a 70% loan to value (LTV). The structure was designed so that 10% of the borrowing was amortised over a five-year period, with the remaining 60% structured on an interest-only basis.

The mortgage was arranged at an interest rate of 1.17% at the time. The arrangement also involved €1.7M in assets under management (AUM).

The structure provided the client with a substantial level of mortgage funding while allowing the repayment profile to reflect their requirements. The ability to combine amortising and interest-only borrowing was particularly relevant given the scale of the acquisition.

The case demonstrates how high-value mortgage finance can be structured for international clients purchasing property in France. Overseas residency, nationality, the absence of an EU footprint and a demanding completion timetable can all reduce the number of suitable lenders, making specialist lender selection particularly important.

For international buyers looking to acquire property in Paris or elsewhere in France, specialist mortgage expertise can help identify lenders able to consider complex international circumstances and substantial borrowing requirements, subject to individual circumstances, valuation, due diligence and lender criteria.

Disclaimer:
This case study is for illustrative purposes only and does not constitute financial, legal, tax or investment advice. Finance is subject to status, underwriting, affordability, valuation, property suitability, due diligence and lender criteria. Terms, rates, LTVs, fees and availability may vary depending on individual circumstances.

Risk Warning:
Property securing finance may be repossessed if repayments are not maintained. Property values can fall as well as rise. Interest-only borrowing does not reduce the capital balance during the interest-only period, so borrowers should have an appropriate repayment strategy in place. International property finance may also involve currency and cross-border risks.