How can I buy a holiday home in France to let?

Posted on 29 August 2007

How can I buy a holiday home in France to let? I have a £130K mortgage on my property worth £335K and earn £30K a year. I would be buying it in a half share with my brother so would need £65K?

 

Hi Helen,

 

You would need to take a joint French mortgage with your brother, which will need a deposit.  Whilst you have the equity for raising the full £65,000 by increasing your own mortgage to £195,000, your income will not stretch this far.  The French mortgage will need to be secured on the new property and arranged as a formal buy-to-let so that the rental income is what pays the mortgage.

For the deposit you could speak to your own lender and see if they can give you a further advance for just a few thousand based on your income (although it looks pretty tight).  Alternatively, perhaps all, or part, of your brother's half could be a cash lump sum that he could raise from his own property, thus serving as a deposit.

If you want to speak about a mortgage on a property to let abroad try Conti.

Katie

Category: Buy-to-let, Buying abroad, Remortgaging

 

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