Financing a Family Home in Le Vésinet for French Expats Returning from London

Introduction

Relocating from one country to another is a significant transition, particularly when it involves purchasing a property in a new or familiar market. This case study focuses on a French couple currently residing in London, who planned to move back to France for family reasons. This article explores their journey in acquiring a family home in Le Vésinet, highlighting the financial strategies, challenges, and solutions encountered during the process.

Background

France’s picturesque suburbs, such as Le Vésinet, offer an appealing blend of tranquility and proximity to Paris, making them ideal for families. However, for expatriates, securing financing for a property in France while being employed abroad presents unique challenges. The couple in this case, aged 44 and 42, both employed, faced the principal difficulty of finding a lender willing to recognize income in British Pounds and employment contracts from outside France.

Case Overview

Client Profile:

• Ages: 44 and 42
• Nationalities: British and French
• Occupations: Both employed by large multinational companies
• Current Location: London, UK
• Future Location: Le Vésinet, France
• Property Type: Family Home
• Property Value: €2,590,000

Objectives:

• Acquire a family home to serve as their main residence upon returning to France.
• Secure financing that accommodates their income in British Pounds and non-French employment contracts.
• Optimize loan terms to ensure affordability and financial stability.
• Complete the property transaction before the start of the School year

Financial Landscape

The couple’s financial strategy had to address several critical components:

Income and Employment Verification:

1. • Both clients earned their income in British Pounds, complicating the loan approval process with French banks that typically prefer income verification in Euros.
   • Employment contracts were with UK legal entities and their French employment contracts had not been made available

Loan Requirements:

1. • Loan Amount: €750,000
   • Monthly payments: not exceeding €4,500
   • Special Conditions: No early repayment fees, no financial collateral

Implementation

In their search for a €750,000 loan, the couple initially approached several banks, which astonishingly demanded a minimum of €1 million in assets under management to even consider their application. This unreasonable requirement placed an unnecessary burden on the couple, who simply wanted to secure a residential mortgage.

Frustrated, they contacted Bluesky Finance for a better solution. Our team quickly recognized their needs and sourced a dry financing solution in the form of a 20 year fixed rate Capital Repayment mortgage without the unworkable terms set by the private banks.

Outcome

The couple successfully acquired their family home in Le Vésinet. Key outcomes included:

• Mortgage approval: Securing the mortgage through a specialist lender who offered the following terms:

• Loan amount : €750,000
• Duration : 20 years
• Interest rate: 3.90% fixed for the entire term
• Term Life insurance underwritten by a third party provider

• Financial Stability: Fixed interest rates and no early repayment fees provided predictability and flexibility in their financial planning.