Private Mortgage

[frexpt]

We have prospective purchasers who are waiting on the completion of two separate sale transactions to give them the total capital they need to fund the offer they have made for our property.

The bulk of the capital will be available on completion of their first sale, so we are considering a completion date of our tranasction to coincide with that, with the balance of funds being owed to my wife and I on what we would consider to be a something like a private mortgage.  The purchasers' other sale transaction completes within two months, so this is likely to be a short term arrangement.

My question here is to ask whether anyone has any experience of something like this in France.  We would be quite comfortable under UK law (either Engalnd & Wales or Scotland), with this type of arrangement, but I just don't know whether this might be possible in France. 

I am aware of the recent post on Legal Agreements, but I am not sure whether ours are quite the same circumstances.

I'm going to try to speak to the notaire tomorrow anyway, but any comments in the interim would be welcome.

Many thanks

[Sunday Driver]

If the purchasers can't pay the full sale price upon completion, then they should be obtaining a bridging loan to cover their two months funding gap.  No risk, hassle or cost to you.

 

[parsnips]

[quote user="frexpt"]

We have prospective purchasers who are waiting on the completion of two separate sale transactions to give them the total capital they need to fund the offer they have made for our property.

The bulk of the capital will be available on completion of their first sale, so we are considering a completion date of our tranasction to coincide with that, with the balance of funds being owed to my wife and I on what we would consider to be a something like a private mortgage.  The purchasers' other sale transaction completes within two months, so this is likely to be a short term arrangement.

My question here is to ask whether anyone has any experience of something like this in France.  We would be quite comfortable under UK law (either Engalnd & Wales or Scotland), with this type of arrangement, but I just don't know whether this might be possible in France. 

I am aware of the recent post on Legal Agreements, but I am not sure whether ours are quite the same circumstances.

I'm going to try to speak to the notaire tomorrow anyway, but any comments in the interim would be welcome.

Many thanks

[/quote]

Hi,

     A friend of mine was selling her house when the purchasers found that they could only come up with half the price at once. They arranged a system of periodic payments (in effect a private mortgage ) via the notaire who recorded the debt with the office of "hypotheques" (the equivalent of a charge on the register in the UK) .  Later when the purchasers sold, before paying off all the loan , the notaire dealing with their sale could not proceed until they had agreed the sum still owing with the previous owner and the notaire then took this from the sale proceeds and sent it to the previous owner, and had the "hypotheque" lifted.  

[frexpt]

[quote user="Sunday Driver"]

If the purchasers can't pay the full sale price upon completion, then they should be obtaining a bridging loan to cover their two months funding gap.  No risk, hassle or cost to you.

 

[/quote]

I agree that would have been ideal, but not possible in this case in view of the purchasers' circumstances.  I can't give any more details on the open forum, but we are satisfied that bridging was not a viable option.

[frexpt]

[quote user="parsnips"][quote user="frexpt"]

We have prospective purchasers who are waiting on the completion of two separate sale transactions to give them the total capital they need to fund the offer they have made for our property.

The bulk of the capital will be available on completion of their first sale, so we are considering a completion date of our tranasction to coincide with that, with the balance of funds being owed to my wife and I on what we would consider to be a something like a private mortgage.  The purchasers' other sale transaction completes within two months, so this is likely to be a short term arrangement.

My question here is to ask whether anyone has any experience of something like this in France.  We would be quite comfortable under UK law (either Engalnd & Wales or Scotland), with this type of arrangement, but I just don't know whether this might be possible in France. 

I am aware of the recent post on Legal Agreements, but I am not sure whether ours are quite the same circumstances.

I'm going to try to speak to the notaire tomorrow anyway, but any comments in the interim would be welcome.

Many thanks

[/quote]

Hi,
     A friend of mine was selling her house when the purchasers found that they could only come up with half the price at once. They arranged a system of periodic payments (in effect a private mortgage ) via the notaire who recorded the debt with the office of "hypotheques" (the equivalent of a charge on the register in the UK) .  Later when the purchasers sold, before paying off all the loan , the notaire dealing with their sale could not proceed until they had agreed the sum still owing with the previous owner and the notaire then took this from the sale proceeds and sent it to the previous owner, and had the "hypotheque" lifted.  
[/quote]

Yes, that was exactly the sort of thing we had in mind.  We'll see what our notaire has to say later.  in the meantime, many thanks for the info.

[PaulT]

Yes, do take legal advice and ask what happens if say, the purchaser declares bankruptcy etc.

[frexpt]

There are plenty of potential pitfalls, so we won't be commiting to anything unless feeling completely secure.

An old cliché, but selling a house really is like waiting for a bus.  Months go buy with no sign, then suddenly viewers appear from all over the place.......[:)]