Financing a Holiday Home in Nouvelle-Aquitaine for an Irish client

Introduction

Acquiring a holiday home in France presents an exciting opportunity for expatriates seeking a blend of investment and leisure. This case study focuses on an Irish gentleman, who sought to purchase a holiday home in the picturesque region of Nouvelle-Aquitaine.

Case Overview

Client Profile:

• Age: 43
• Nationality : Irish
• Occupation: Salaried employee with significant income from Restricted Stock Units (RSUs)
• Current Location: Ireland
• Future Property Location: Nouvelle-Aquitaine (Dordogne), France
• Property Type: Holiday Home
• Property Value: €248,000

Objectives:

• Acquire a holiday home in Nouvelle-Aquitaine to be rented out for brief periods.
• Secure financing that accommodates the property’s location
• Optimize loan terms to ensure affordability and financial stability.

 Financial Landscape

The client’s financial strategy needed to address several critical aspects:

1. Income Verification:
   • A significant portion of the client’s income was in the form of RSUs, which posed a challenge for traditional lenders who typically prefer stable and predictable income sources.
   • Ensuring that the RSUs were valued and considered appropriately in the loan application process was crucial.
2. Loan Requirements and Terms:
   • Loan Amount: €200,000
   • Monthly payments: Not exceeding €1,200
   • Special Conditions: No early repayment fees, no financial collateral

Implementation

In their pursuit of a €200,000 loan, the clients faced substantial challenges due to the property’s rural location and the modest loan amount, which deterred many traditional lenders. Complicating matters further was the income structure based on RSUs (restricted stock unit), making French banks hesitant to proceed.

In search of a solution, they partnered with Bluesky Finance. Recognizing their unique circumstances, our team swiftly connected them with a lender familiar with the Dordogne area and adept at underwriting applications from Irish clients. This strategic alliance facilitated the procurement of a variable rate loan spanning 25 years, with monthly payments comfortably under €1,200—perfectly aligned with the clients’ financial goals. With Bluesky Finance, clients discovered a dedicated partner committed to navigating challenges and ensuring a successful outcome for their property investment, all with a personalized approach.

Outcome

The Irish resident successfully acquired the holiday home in Nouvelle-Aquitaine. Key outcomes included:

• Mortgage Approval: Securing a mortgage through a regional bank who offered the following terms:
  • Loan Type: Capital Repayment Loan
  • Term: 25 years
  • Interest Rate: Adjustable rate, Euribor + spread of 0.65%

• Financial Stability: The adjustable interest rate came with a cap and an ability to switch to a fixed rate provided flexibility and predictability in financial planning.