Privilège du Prêteur de Deniers

[Yoshie]

   Hi,

    we have found our house and signed the compromis de vent and are now looking at mortgages from both banks and brokers we have a couple     that seem to suit us but the bank now tells us we need Privilège du Prêteur de Deniers a obligatory guarantee which is a legal charge over our     property.  Can some one explain exactly what this is and how the cost is calculated.

    Thanks in advance

[Clair]

[quote user="Yoshie"]   Hi, we have found our house and signed the compromis de vent and are now looking at mortgages from both banks and brokers we have a couple     that seem to suit us but the bank now tells us we need Privilège du Prêteur de Deniers a obligatory guarantee which is a legal charge over our     property.  Can some one explain exactly what this is and how the cost is calculated. Thanks in advance

[/quote]

it means the lender has first claim before any other creditor, should you fail to keep up with your payments

Privilège du prêteur de deniers

Garantie reconnue spécifiquement au créancier (prêteur) qui a fourni

l’argent qui a servi à l’acquisition d’un immeuble. Elle lui permet de

se faire payer avant les autres créanciers. Les effets du privilège du

prêteur de deniers sont semblables à ceux d’une hypothèque

also found

Le privilège de prêteur de deniers

Proche de l'hypothèque

en matière de saisie et de vente en cas de défaillance de l'emprunteur,

cette prise de garantie présente malgré tout des différences.

Le privilège de prêteur de denier ne

peut garantir que les prêts destinés à l'achat d'un logement existant.

Pas question par conséquent, d'y recourir pour la vente d'un bien en

l'état futur d'achèvement (VEFA). Contrairement à l'hypothèque, cette garantie ne nécessite pas le consentement de l'emprunteur.

On peut également y recourir en cas d'acquisition d'un bien accompagné de travaux.

Le privilège prend effet

rétroactivement à la date de la vente, s'il est inscrit dans les deux

mois. Le créancier détenant cette garantie est payé en priorité sur le

créancier hypothécaire postérieur.

Avantage pour l'emprunteur

Les frais liés à cette prise de garantie sont allégés par rapport à ceux d'hypothèque puisque la taxe sur la publicité foncière n'est pas perçue dans ce cas.

and this

Often, on residential property, loans are secured not by way of a legal

mortgage but by way of 'privilege' known as 'le privilege du prêteur de

deniers'. This is a form of French mortgage which does not exist in

England but is widespread in France.

The notaire’s fees for a privilege

du prêteur de deniers are significantly less than for a mortgage.

[Mel]

Hi Yoshie

Both the IPPD and a hypotheque equate to a first charge on the property. IPPD is the term used for an exisitng property, hypotheque for a new or off-plan (VEFA) acquisition. The cost is calculated from a "bareme" (scale charge depending on price and age of property), ie it is not negotiable; the Notaire will collect it from you. If the brokers knows what he is talking about, he can explain it all to you. The bank "garantie" is an additional charge over and above the Property Finder's fee, Estate Agent's fee, the Notaire's fee, the bank file fee and the broker's dossier fee if charged. Worth searching out a broker who doesn't charge you a dossier fee, I'd say. A good place to start is www.bestfrenchmortgage.com

Bienvenue en France, Mel

[Juswundrin]

"A good place to start is www.bestfrenchmortgage.com"

A cynic would notice that you seem to be recommending them quite a bit in your first posts on the forum?

[Benjamin]

[quote user="Juswundrin"]"A good place to start is www.bestfrenchmortgage.com"

A cynic would notice that you seem to be recommending them quite a bit in your first posts on the forum?[/quote]

It's a bit funny that it was JRL's first post also.

Benjamin

[booboo]

well try this link then : www.meilleurtaux.com  they're a well known, and good reputation french mortgage finder; usually file fee is Zero with them; and their english pages are online now too. They'll find you the best offer with regard to your situation.

[Mel]

Most of the additions to the purchase price, such as the IPPD registration are unavoidable. I know someone who was charged 1.5% of their mortgage value by a French mortgage broker, just to be introduced to the English department of a French bank! I don't want to see Yoshie go the same way.

Kind rgds, M

[Yoshie]

    Thanks to every one for the replies, a lot of useful information and interesting links I'm not sure if it helped or just made me more inquisitive (not a bad thing).  This is a great site for newbies in my position.

Thanks

Yosh