Financing a Ski Chalet in Méribel for a British Investor

Introduction

Investing in a ski chalet in the French Alps offers both recreational enjoyment and lucrative rental income opportunities. This case study examines the journey of a British investor residing in the UK, who sought to purchase a ski chalet in Méribel, Trois Vallées.

Background

Méribel, located in the heart of the Trois Vallées, is a premier destination for skiing enthusiasts and property investors. However, financing a high-value ski property can be complex, particularly for expatriates dealing with income from bonuses and investment portfolios. This case study focuses on a 43-year-old British client with an existing Buy To Let portfolio, aiming to expand his investments with a ski chalet in Méribel.

Case Overview

Client Profile:

• Age: 43
• Nationality : British
• Occupation: Salaried employee with bonus income
• Current Location: United Kingdom
• Future Property Location: Méribel, Trois Vallées, France
• Property Type: Ski Chalet
• Property Value: €1,175,000

Objectives:

• Acquire a ski chalet in Méribel to be rented out during the ski season.
• Secure financing that accommodates the property’s high value and the client’s income structure.
• Optimize loan terms to ensure affordability and financial stability.

 Financial Landscape

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

Income and Employment Verification:

1. • The client’s income included a substantial portion from bonuses, which posed a challenge for traditional lenders who prefer stable and predictable salary income.
   • Ensuring the bonuses were valued appropriately in the loan application process was crucial.

Loan Requirements and Terms:

1. • Loan Amount: €665,000
   • Monthly payments not exceeding rental income projections

Implementation

 Sourcing a mortgage loan in euros can be challenging for a British client. Our client quickly discovered that local banks were unable to assist due to the regulatory burden associated with UK residency. Additionally, the client’s significant variable compensation posed further.

Bluesky Finance stepped in and successfully sourced a specialist lender willing to meet his needs. With Bluesky Finance, he found a solution-oriented partner dedicated to overcoming financial obstacles and ensuring a secure path forward in his property investment.

Outcome

The British investor successfully acquired the ski chalet in Méribel. Key outcomes included:

• Mortgage Approval: Securing the mortgage through a lender who offered the following terms:
  • Loan type : Capital Repayment
  • Term: 25 years
  • Interest Rate: 4.4% fixed for the entire term
  • No requirement to arrange any Term Life insurance
  • No requirement to pledge any financial assets