Equity release

[oglefakes]

I may have forgotten to actually convey the message, that I completely agree with you [:)]

Yes, banks ask about home improvement loans, but you can have so many 29.9%APR store cards that you need more pockets to stuff them into [:)]

I did know of someone you was successful in getting cash advances on cards that getting a consolidation loan at a better rate - linked to their mortgage. A bit risky, but it worked.

cheers

[Le petit pet]

As I understand it the government authorised French banks to offer equity release facilities primarily to senior citizens; there would be no repayment, the banks would simply put a charge on the house and collect when the owner died.  This came into law Dec 2005 but I have not yet found a single bank willing to do this?

[makeiteasy]

Unfortunately at the present time, no banks are ready to propose the new"pret viager hypothecaire" despite the fact the law was voted.Nevertheless, it exists some banks which are proposing to release equity but you would have to pay an installment(interest only or capital+interest) in any case.I'm working with them, so contact me if you want more details.[;-)]

[Le petit pet]

I would be prepared to consider equity release based on repayment of interest only.  What rates are currently available and over what period? Please send me details.

[makeiteasy]

Rates are starting from 4,45% to 4,95%(at the 26th march, but may change at anytime) on 20 years maximum.Please send me a direct email if you want more details on your own situation.

Regards.

[markandsacha]

Hi Chris,

I have PM you.

Regards

Sacha

[Panda]

Hi

We have found CIO or CIC as they are sometimes called very flexible.  We own properties (4 appartments one house) and have taken a mortgage for more than 100% for the flats in order to fund the renovation.  They were happy mainly because we got an imobillier to state the rental value post reno work was X and 'X' more than covered the mortage payments.  They were not interested in any other income and did no other checks and have no charge on our own house, decision was made pretty much on the spot.  We had previously spent 4 months trying to convince Abbey Natioanl as once was, now in France under a different name, they were a nightmare and wanted so much info it was a joke. 

I would recommend going into a local CIO branch near to where the property you are after is, get the selling agent to put some numbers together, if straight reno/resell then get them to give the post renovation value, if for rental the rental value, if you can prove that the project can pay for itself you should get a positive response.

The best news, our flats have now been valued at a good deal more than we paid for them (including renovation costs), we got a great deal when we bought them (which is the time you make your money as they say) we now rent them out long term, not always an easy option but we have it as covered as it can be and as long as 1 is rented it pays the mortgage.

We are now looking for another project and the bank have said they will support it we may renovate and sell on or get another set of appartments, it's not risk free and is not for the faint hearted.  We do know the issues re CGT etc. and it all needs taking into account when calculating profit.  We've done much of the work ourselves on the first project and contrary to popular belief you can claim tax relief in these circumstances, we submitted our bills for the renovation work which are a combination of artisans and bills for materials for the jobs we did ourselves , all have been accepted and our tax bill was zero for last year because of it.  My notaire has also confirmed that were we to sell the flats some of the work we did ourself they would allow against CGT, not paint etc. but where we bought a full set of new windows form a registered french building company, that kind of thing.

Panda

[Babbles]

Panda, great to hear someone having a success story with French property development, Hats off to you[:D] where abouts in France are you ? I would certainly be keen to hear more about your expereince of property development in France, keep posting and don't let the grumps get to you[:P]

[Panda]

Hi Miss Babs

We were in the Vienne now in the Charente (just moved), been in France for 4 years and bought the development property in year 1.  It now returns around 12% on investment per annum but as I said it's not for the faint hearted, everyone I'm sure knows the issues of long term letting in France but we feel for the investment alone (ignoring the monthly income) it's worth it.  Looking at it this way we will own the property out right in 15 years time and hopefully others will have contributed (if not paid completly) the mortgage by renting the appartments, we know we will get non payers etc. but we have taken out insurance against some of the pit falls and whilst it is never going to be fool proof it's as close as it can be, that and we have a good letting agent who insists on only the very best renters with good references and deals with all the paperwork and issues.  For us it was a first punt into the development market and hopefully something for our future.

Can't stress enough before anyone jumps on me, it's not for everyone but we don't mind taking a risk, we've done it all our lives together, that's how we ended up here after all!  I will let you know when we are on to our next project (and any issues with our first development which is currently fully let by paying customers..long may it continue!)  Currently though we are up to our necks developing our own house, bit of shock that one after living here for 4 years in a lovely house but felt it was time to earn some money on the house we live in!  The joys of a mobile home in April can not be described!

Panda

[Mutiara]

Hi Chris,

 

We are thinking of trying to borrow some money to complete our renovations by using the equity in our property which we bought17 years ago. I would be grateful if you could pas on the name of the company you used and any advice you may have.

 

Thanks in advance,

Maud.

 

[Babbles]

Panda, Faint hearted we're not, stupid possibly [:D] it wouldn't be the first project that we've done and have put up with a fair amount c** p whilst they going on , as they say you're a long time dead so you may as well give it a go, as MOH says you make a decision and then make it work even if sometime you're flying by the seat of you're pants! First we need to sell our business in the UK to release the initial capital we need, we'd live in the house in Gers which is just coming to the end of its renovations so it wouldn't be as bad as when we bought the shop which was living in a nightmare while we were turning the busines around we lived in the bedroom for 3 months there was water running down the inside of the sitting room walls and the avacado bath had a crack in it so showers had to be real quick!! it made some old french style of decorating look quite tasteful!

[Conjan1]

Hi Panda

We are in a similiar position and are looking for a Renovation Mortgage. We have a block of 3 houses, the first now completed and rented out mid/long term. The other 2 have been partly done and we will also be doing alot of the work ourselves. The rental from the first one should more than cover the mortgage repayments.  A few questions for you to answer if you would be so kind.

1. What was the name of the loan called so I can mention this on a visit to my local CIC?

2.What was the time line from applying for the loan to actually getting it?.

3.  What was tthe repayment period and was the interest rate fixed in anyway.

4. Are you allowed to make extra payments without penalty to pay off the loan earlier?

Many thanx in advance

Conrad & Janet  Area 35