Clause Suspensive and the French Mortgage

We’re nearly at the end of 2010 and French character is nevertheless a great investment. The French Mortgage rates are at one of the lowest levels seen in France for many years. character prices are moving upwards, however, there are nevertheless some great bargains with character prices at levels seen 3 – 4 years ago in areas such as Valbonne, Mougins, Antibes, Nice and Cannes on the French Riviera.

France was already voted the best place to live in the world by International Living Magazine for the 5th year in a row!, and why not! Quality of life, Culture & Leisure, Health, Infrastructure and of course not forgetting the climate and the 300 days of sunshine we get on the French Riviera during the year.

If you’re thinking about buying a French character and securing a low French Mortgage rate look no further than an independent Mortgage broker on the French Riviera: A Fast, Efficient and specialized NO FEES independent service – an independent broker can offer advice on any bank rate obtainable.

When buying a French character as a non-resident for an investment or to use as a vacation home, there are some elements of the mortgage course of action that you need to be aware of. One such component is the Clause Suspensive. This is basically your get out clause for the return of your place if anything goes wrong and the French character buy does not go ahead. Your independent mortgage broker in France and notaire should explain this fully to you before you go into into any kind of contract.

You will sign the Compromis de Vente (sales agreement), ensuring that it contains the ‘Clause Suspensive’ stating that the buy is dependent on you obtaining a Mortgage. If the bank declines the French character Mortgage for any unforeseen reason, then all monies including the place will be returned to the buyer in complete. There will be a time limit for applying for your Mortgage broker in France stipulated in the ‘compromis de vente’, typically this is 10 days. This is the time in which you have to submit your Mortgage application to the lending bank via your Independent Mortgage Broker – you then have around another 30 days to have the French Mortgage offer in place.

It is important that the financial details of the operation: the loan amount, the name of the lending bank, the interest rate and the length of the Mortgage are defined in the compromis de vente to avoid problems later. In many situations we suggest you fax or examine a copy of the compromis de vente to your independent French Mortgage Broker so that they can ensure that the financial details of the buy are correctly defined to protect your interests.

If you do not intend to acquire a Mortgage in France on your character, you are expected to write in your own handwriting that you intend to give up your rights under this law. This is not always wise, since should you afterward decide to acquire a Mortgage, and fail, then you will lose your place. If, however, the seller will only consider your offer without you having recourse to a French Mortgage, then your mortgage broker in France can advise you on how to proceed by pre-approving your loan application to considerably lessen the risk of losing your place.

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