napoleon Posted October 6, 2005 Share Posted October 6, 2005 Hi all, I have been considering ways of bypassing the French inheritance laws. It led me to wondering if we could borrow a significant amount of money using the house as security. We have fully owned the house in France for five years and have no loans in France. Is it possible to take out a mortgage/secured loan on that property from a French bank?We are resident in the UK and use the house for holidays only. Has anyone had good or bad experiences in these matters or can you offer some guidance? Thanks, Alistair Link to comment Share on other sites More sharing options...
makeiteasy Posted October 6, 2005 Share Posted October 6, 2005 Dear Alistair,yes i could help you to raise money against your property in France.Often the maximum amount possible to raise if there's no mortgage is 60% of the value.Let me know if you want me to help you Link to comment Share on other sites More sharing options...
graham34 Posted October 7, 2005 Share Posted October 7, 2005 I don't see how this helps as the first thing an executor of the will needs to do is pay off any debt, i.e. the mortgage.Graham Link to comment Share on other sites More sharing options...
makeiteasy Posted October 7, 2005 Share Posted October 7, 2005 Sure, but the mortgage is not repaid by the executor of the will because main mortgages are secured by an insurance (for death and disability) and so if the borrower die, his family will have the house(because the mortgage is repaid by the insurance) AND the money Link to comment Share on other sites More sharing options...
Teamedup Posted October 7, 2005 Share Posted October 7, 2005 make it easy, you are implying that it is so easy to get insurance like this. When we get older the liklihood of having nothing wrong with us is reduced and it can be hard going and expensive to get such insurance. We didn't take insurance on our last loan as the repayments were going to be high and I don't consider that my husband at least has much wrong with him. Is this the rente viagere your are talking about? Link to comment Share on other sites More sharing options...
andyh4 Posted October 7, 2005 Share Posted October 7, 2005 Ah, but if the mortgage is paid by an insurance are we not back at the point where the inheritors get the full value of the house and the associated inheritance taxes? Link to comment Share on other sites More sharing options...
napoleon Posted October 10, 2005 Author Share Posted October 10, 2005 Thanks everyone for your comments. Clearly I need to carry on with the research to cover all eventuallities for my circumstances. Alistair Link to comment Share on other sites More sharing options...
makeiteasy Posted October 10, 2005 Share Posted October 10, 2005 Well, you're right Andy, but you'll have enough money to pay inheritance taxes then Link to comment Share on other sites More sharing options...
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