The Paris property market has always been resilient, and that's unlikely to change anytime soon, even for high-end properties. Generally speaking, the buoyancy of Paris' real estate means that French mortgages for non-residents are more readily available than in the other parts of France that also attract foreign investors. In addition, Parisian property – including luxury and high-end real estate – is typically always in demand.
While there are many options for financing a property purchase in Paris, you should note that French mortgages can be complex for international investors, especially if you are operating alone. French retail banks do offer mortgages to non-residents for Parisian property purchases. However, you will likely find that many of these will be very standardised packages that don't necessarily provide you with the most advantageous rates or terms as a foreign investor.
For luxury and ultra-prime property, one of the best routes to getting a mortgage in France is to borrow from a private bank. Typically, you will find that to get a mortgage for French property from a private bank, the bank will require an asset pledge if the value of your French mortgage is at €1 million or above.
In this case, we assisted a HNW Jersey resident who was looking to purchase a luxury property in Paris. With the property worth €3.5 million, we knew the best route to getting a mortgage for our client was to approach a private bank. The amount you will be required to put forward will vary from bank to bank but tends to sit between 20% and 50% of the outstanding mortgage with equity release considered in the right environment. Enness will advise you on the type of assets you might want to use as collateral and when you should request equity release along the way.
Working with Enness will help you secure attractive mortgage rates and streamline the purchase process. You will also benefit from Enness' ability to structure your mortgage in a way that also considers taxation, mitigating exchange rate risk and the most advantageous legal structure for you.
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