Financing a Parisian Apartment for a Franco-American client

Introduction

Navigating the complexities of acquiring property in France can be particularly challenging for expatriates with multi-national ties. This case study focuses on a Franco-American expatriate residing in the UK, who sought to purchase an apartment in Paris to serve as her primary residence.

Background

Paris, with its allure and cultural richness, remains a prime location for expatriates seeking a permanent residence. For those with income in foreign currencies and employment contracts outside of France, securing financing for a property in Paris can be intricate. This case study examines the journey of a Franco-American client, aged 43, who needed to navigate these complexities.

Case Overview

Client Profile:

• Age: 43
• Nationality : American and French
• Occupation: Salaried employee
• Current Location: United Kingdom
• Future Property Location: Paris 17th arrondissement
• Property Type: Apartment
• Property Value: €1,400,000

 Objectives:

• Acquire an apartment in Paris to serve as the primary residence.
• Secure financing that accommodates income earned in GBP and the client’s fiscal residency status
• 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 was earned in British Pounds, presenting a challenge for traditional French lenders who prefer income in Euros.
   • Employment contracts were with companies based in the UK, complicating the loan approval process.

Loan Requirements and Terms:

1. • Downpayment of no more than 10% of the purchase price
   • Special Conditions: No early repayment fees

Tax and Legal Considerations:

1. • Understanding the tax implications of purchasing property in France while being a fiscal resident in the UK.

Implementation

Despite her high net worth and an existing banking relationship with a French High Street bank, our client faced multiple loan application rejections. Seeking assistance, she turned to Bluesky Finance. The primary challenge was finding a lender who would recognize her income in GBP and her employment outside France. By leveraging our strong relationships with our panel of lenders, we successfully secured a tailored lending solution through a subsidiary of a Paris High Street bank.

Outcome

The Franco-American expatriate successfully acquired the apartment in Paris. Key outcomes included:

• Mortgage Approval: Securing the mortgage through a private bank specializing in expatriate clients was a pivotal achievement. Terms offered were as follows:
  • Loan Amount: €1,120,000
  • Loan Type: Capital Repayment Loan
  • Term: 25 years
  • Interest Rate: 4.20% fixed for the entire term

• Financial Stability: The fixed interest rate and no early repayment fees provided predictability and flexibility in financial planning.