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Advice sought - Bridging loan


Happy Expat

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We are about to visit 16 & 17 to view and hopefully buy a property to retire in. This is dependent upon the sale of our existing UK property for funding the purchase. Due to our situation we need to complete UK sale the same day as our French purchase so that we are able to move out and in on the same or following day.

 

A bridging loan is needed for the deposit as our sale is not complete. As we understand the situation the balance for the property we shall be buying must be with the notaire on the day of signing. Obviously this cannot be funded directly from our sale proceeds as there is a time element in transfer of funds.Would a bridging loan for the balance be payable on the day of signing as well or could it be repaid a few days after?

 

What have other LF members experienced and can any offer suitable advice please as we seem to be in a Caatch 22 game at present.

 

Thanx

 

Bob & Jane

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Something very similar to a bridging loan, known as a prêt relais, is pretty common in France because it's rare to move into a new house on the same day that you sell your previous one. Most French banks operate such a scheme, at low interest rates. We have used one when moving within France.

They normally work to a time limit - if you buy a house, using one of these loans, and the previous house isn't sold within the time (I think in our case it was three months) then the loan is converted to a mortgage, with a charge on the house, and associated legal fees are incurred. But if all is agreed before the time is up then it is just a straightforward loan, pretty cheap, which gets paid off when money is received by the notaire from the sale of the first house.

Whether you could get such a loan from a French bank on the sale of a house in England is not certain, but it would be well worth asking.

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I'm sure you could find a gite or other accomodation which accept animals. I find it highly unlikely you'll get everybody involved to work to a same day completion, and even if you do manage it, what happens if something goes wrong with your sale in the UK? Save yourself a lot of stress and make sure you have sold the UK house first, and then take your time finding your new home! (just my opinion, others may think differently!)

Steve
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I seem to remember somebody else in the last year or so who was in the same situation. They'd assumed that the two transactions had to happen simultaneously. They don't !! And I think they had animals as well. And I think they found a rental that accepted animals. There must be plenty out there.

So have a second thought before incurring the hassle of a bridging loan
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If you click on Celine's user name (franceaddict) in the left hand column - though if you are using an old, or non-Microsoft, browser or have a personal firewall you may not see that - you will be able to bring up her profile. The website address is in the profile.

The forum rules mean that people can only link to personal websites in the body of a message only if the sites are strictly non-commercial. Links to your commercial website can be included in your profile, or in a signature to the message.

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