| French Commercial Mortgages – what to expect |
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We are proud to provide the only French Commercial Mortgage Service offered by a UK-based, experienced and bilingual broker to purchasers or owners of commercial property in France.
This rare service has been created out of sheer demand. As no other broker has been able to secure this type of finance successfully, we are seeing an increased demand for this service. As a significant number of UK nationals aspire to move abroad, to countries like France, to start a new life, running a business for example, we see this as an essential service.
We have also seen a demand from current business owners in France, those who were lucky enough to purchase their business without the assistance of a mortgage, who would now like to release the capital tied up in their business premises in order to expand the business or for other projects/reasons.
UK purchasers of French commercial property typically acquire Bed and Breakfasts, “Gite” accommodation, shops, restaurants, cafés and bars. However, the French Commercial Mortgage team is able to consider all commercial propositions including the purchase of a going concern.
The process for securing a French commercial mortgage is very different to the procedures followed to obtain a residential mortgage and can take longer to arrange. It is therefore very important to contact our French Commercial Mortgage Team as soon as a business purchase or re-mortgage/equity release mortgage is being contemplated. |
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FRENCH COMMERCIAL RE-MORTGAGE / EQUITY RELEASE MORTGAGES
Lenders in France are receptive to the needs of Assetz Finance clients who need to release cash from their business premises. Lenders don’t normally promote their commercial re-mortgage or equity release products to non French business owners but they can offer this kind of product as long as they deal with an experienced broker who acts as the middle man for the transaction.
Releasing cash tied up in a French commercial property allows businesses such as B+Bs, shops, cafés, bars and restaurants to expand and make the most of all business opportunities. The cash released from the re-mortgage of the commercial property can also be used to renovate the property or purchase other buildings to add to the business.
RATES
In the UK, most commercial lenders offer mortgages based on a rate of interest that is higher than the rate offered on residential property. This is not true of French lenders who tend to apply a rate of interest on their commercial mortgages that is similar to that offered on residential mortgages.
FEES
In the UK most commercial lenders apply a 1.5-2% arrangement fee on their commercial mortgages. UK commercial mortgage brokers will typically charge a similar fee in addition. The overall cost of arranging a UK commercial mortgage is normally in the region of 3-5%.
In France, however, the arrangement fee charged by the lender is typically a flat rate of between 300 and 600 Euros whilst the fee charged by Assetz Finance takes the overall cost of arranging the mortgage to no higher than 3% of the mortgage amount.
FRENCH COMMERCIAL MORTGAGE PROCEDURES
Each French commercial mortgage case is unique and therefore the time frame, the process and the products available will vary slightly each time. Whether you need to finance the purchase of a Bed and Breakfast, a “Gite” complex, a shop, restaurant, bar or café our French Commercial Mortgage Team will advise you on exactly what you must do at each stage of the application process.
The process for securing a French commercial mortgage is very different to the procedures followed to obtain any other type of mortgage in France and typically takes longer to arrange. It is therefore very important to contact our French Commercial Mortgage team as soon as a business purchase or re-finance is being contemplated.
Enquire Now
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To speak with a member of the Assetz Finance team
please call 0845 400 8000
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