Securing a mortgage is a fundamental legal process which requires very clear advice and information.
It is one of the main legal responsibilities of a notaire to secure the mortgage (French mortgage or mortgage from a foreign bank) on French properties. Under French law this kind of guarantee is a lien on the property (this includes mostly the privilege de prêteur de deniers PPD and the hypothèque) or on French shares (French pledge or nantissement). We will liaise with your French (or foreign) bank or creditor and draft the French deed required to register the charge or pledge.
Advice on the way to finance your project
We can advise on the best way to finance your purchase, the type of mortgage, amount to borrow considering your potential taxation on rental income and wealth tax liability in France.
When financing a French investment it is important to anticipate any technical issues with the bank i.e; who should borrow when purchasing in joint names (indivision), is a caution hypothécaire or a third party agreement required?… If the purchase is in the name of a French property holding company (SCI, SARL…) the bank should be aware of this from the beginning.