Mortgages - 10 % deposit and 8% notaire fees - im confused!

[PMartyn]

Hello,

I understand that for a UK resident to purchase a property (via a mortgage) in France, the max LTV rate is 85%. I also understand that a UK resident has to pay the 8% notaire fees as cash - rather than include this in the mortgage. My question is can the 10% deposit (due when the compromis de vente is signed) be part of your mortgage, or is this also due in cash?

An example would be purchasing a property worth E150,000;

I would need  a min. of E22,500 as a deposit (15% of 150,000)

plus an extra E12,000 (8% of 150,000)

....but would i require a further cash payment of E15,000 as part of the deposit? Or can this be included in the actual mortgage?

 

Thanks for your help...

[Victor Meldrew]

Do not forget that as a buyer you also pay the estate agents fees as well and these are approx a further 6% of the purchase price. 

Victor

[Jay]

You can get a % of the total cost of the purchase, depending on income and the no. of years you wish to pay. If the house is 150,000€ then you can go for say 50,000€ mortgage (as an example) and pay your fees out of that, you have no need to specify what it is for, other than a mortgage. All the money must be up front when you sign the paperwork anyway. Provided you have the income to service the loan there should be no problem getting the reasonable percentage you need.

I presume you are talking of a mortgage from a French bank? If that is the case have a look at http://www.ca-charente-perigord.fr/particuliers/pret-immobilier/e-immo.html

You can either get a quotation by email or use the simulator.

[Sunday Driver]

If the purchase price of the property is 150,000€ and the bank are willing to lend you 127,500€ (85%) then you will need to cover the 22,500€ shortfall plus the 12,000€ notaire's fee.  That means you'll need to have 34,000€ of your own funds available.

Of this, you'll have to pay 15,000€ (the 10% deposit) up front when you sign the compromis de vente. 

When you sign the acte de vente, you have to pay the remainder of the purchase price (135,000€) which will met from the mortgage and your own cash.  You also pay the notaire's fee from your own cash at this point.

As mentioned, there's also the agent's fee to factor in....

 

 

 

[PMartyn]

Thanks for all the replies...

Some Estate agents already factor in their percentage into the House price -is that correct? Obviously this is something you would have to check before agreeing a price.

With regards the example above - when you say "you have to pay the remainder of the purchase price (135,000€) ".....is that correct? Where does the 135,000 arrive from?

Sorry if I'm being thick, I've done a lot of reading into this and probably confused myself.

 

[Sunday Driver]

[quote user="PMartyn"]

With regards the example above - when you say "you have to pay the remainder of the purchase price (135,000€) ".....is that correct? Where does the 135,000 arrive from?

[/quote]

The price of the house is 150,000€. 

You pay a 10% deposit up front - ie, 15,000€

That leaves 135,000€ as the remainder of the purchase price to be paid........[;-)]

 

[PMartyn]

OK i think i understand the situation ...so asuming the agents fee is factored into the 150,000€ price.

You would need 15% deposit for the mortgage - 22,500€

You would also need to find an extra 8% for the notaires -12,000€

However the 10% deposit (15,000€) could be paid with the 135,000€ loan/mortgage you have taken.

Correct?

I was getting confused with all the differing types of fees.

 

 

[Jacqui Too]

[quote user="PMartyn"]

Sorry if I'm being thick, I've done a lot of reading into this and probably confused myself.

[/quote]

Sunday Driver put it one way (correct) I shall attempt to put it another in the hope that you understand[:)]

Purchase price incl. agency fees                              €150.000

Notaires fees                                                           €  12.000

Total price                                                               €162.000

Mortgage 85% of €150.000                                     €127.500               € 127.500

Your own money needed                                         €  34.500

Deposit needed up front                                          €  15.000                                             €  15.000

Leaves you with                                                      € 19.500                 €  19.500

                                                                                                             _______

To be paid on completion                                                                     € 147.000              € 147.000

                                                                                                                                         _________

TOTAL PAID                                                                                                                      € 162.000

 

I don't know anything about French mortages but I'm sure they will only pay up for the completion and not for the deposit which is due at the start of the proceedings! So you will need to have your € 34.500 sorted at the onset.

[PMartyn]

Thank you that answers my question perfectly!

I initially wasn't sure if the 10% deposit needed was on top of the minimum 15% cash needed to qualify for a mortgage.

 

Thanks to everyone again....

[Nick Trollope]

Bear in mind that you cannot mortgage the Notaires fees - it isn't allowed, and CA won't mortgage the agents fees. I have, however, had 2 100% motgages (for the PNV of the property).

[ausibattler]

Hi Nick,

Sorry confused with your jargon! Whats 'the PNV of the property'?

Thanks

[Chancer]

At a guess "prix net vendeur"

But just a guess.