We are proud to announce the new release of our new Investor Deal with one of France's leading Leaseback developers at Le Domaine de Rochvigne in the beautiful St Emilion, Dordogne!
The development is just 15 mins from Bergerac airport ensuring direct access from several UK carriers into one of France's most popular tourist destinations. More than 2.9million people come to the Dordogne every year and St Emilion is the region's most renowned location thanks to the prowess of its wine's, gastronomic history and incredible scenery enticing an increasing number of tourists each year.
Capital Appreciation is strong as a result and has been very strong on average over the last 10 years.
Domaine de Rochevigne
The development consists of 85 luxury units, out of which the first 24 two bed duplexes can be purchased with only €3000 deposit.
This Investor Deal should appeal to a good proportion of your investors as it provides a much more interesting & profitable alternative to a pension.
"With France's leading Eco-Leaseback provider this investment offers security, the potential for strong capital gain, tax advantages and even the option to have some fun and use the property, all for €3000 initial deposit"
Investment Summary - 2 bedroom Duplex House
Investment Summary - 2 bedroom Duplex House
Purchase Price excl VAT €181,895
Total Cash Employed €3000
Monthly Mortgage Shortfall -€278
If a purchaser decides to put in more cash they can, and the shortfall will drop, e.g. €13,000 cash employed, only -€180 per month shortfall.
Here is an explanation of how we can achieve such a high ratio of gearing on this product:
- 1. 88%LTV full status repayment mortgage is provided by French Bank
- 2. €10,110 is advanced INTEREST FREE from the devloper on completion and is paid back as a deduction of rental income over the first 9 years. (€1140 deducted from the rental income per year for 9 years and paid back to the developer)
- 3. €18,000 gift from the developer on first 24 units.
- 4. The advance of cash and the gift covers the difference between the mortgage LTV and purchase price, and also covers the notary fees, stamp duty, mortgage registration tax.
- 5. The bank fees of €1500 are not taken into account in the finance calculations…. These are paid over 24 months and in fact the VAT rebate on the furniture will cover these
- 6. After the first 9 years the developer loan will have been paid off and therefore the rental income increases by €1140 per year again. This of course means that any shortfall between mortgage and rent will also decrease significantly.
Security of Investor Funds
All investor’s funds are of course held in the Notaire’s secure Escrow account and nothing is drawn down by the developer until the developer has secured the GFA Insurance with the bank. This policy insures that the development will be built come rain or shine and allows the investors to proceed to ‘notification’ (signature of the deeds).
The reservation deposit is refundable pending mortgage approval by French law and also the client’s acceptance of the contracts, following which there is still a cooling off period during which the client may withdraw.
French Leaseback Purchase Process
Step 1: Reservation
Speak to me, i will advise the developer and place a 5 day reservation option on the property that suits your needs.
Step 2: Deposit Payment
In order to confirm your reservation you will need to pay a reservation deposit of €1500 by bank transfer to the notary’s bank account before the reservation option drops - you will be provided with these details. Once the bank transfer is made, email the proof of transfer to me and i will confirm with the developers London office.
Step 3: Mortgage Application
You must speak to a mortgage broker Athena Mortgages at the earliest possible convenience to first assess your affordability of a mortgage and then get the mortgage application under way. I can assist in this process.
Step 4: Reservation Contracts
The reservation contracts will be filled in with the names you request and the ownership formula you have selected and sent to your home address via Fed Ex or next day delivery. You will receive 4 copies in French, 1 copy in English and site, block and floor plans of the property. You will be provided explanations where to sign and initial.
Step 5: Return of Contracts
You have 10 working days to return the reservation contracts back to the developers London office. The developer will then send the contracts to the notary for validation and once they are checked and approved you will be sent a counter-signed copy for your records. Upon receipt of this contract, you will have a 10-day cooling off period, as stipulated by French Law, during which time you may cancel.
Step 6: Notification
Notification at Domaine de Rochevigne is forecast to be July 2011 and provided you have been accepted for a mortgage, you will pay the remaining €700 to the notary and
also €807 to the mortgage broker upon acceptance of the mortgage offer. The notary
will send you official sales contracts for signature along with several other documents that French law require you to sign at this stage. You will have the option to sign by proxy and have documents certified in front of a notary public or to sign at the notary in person in France. Once the notification paperwork is signed and completed it should be returned to the assigned Notary, with the second stage payment, and the Notary fees.
Step 7 Subsequent staged payments
The notary will request future staged payments upon the achievement of certain levels of construction directly from your bank as you are buying with a mortgage. Any interest will be deferred until you receive your first rental payment from the property and this is already taken into account in the financial simulations.
Step 8 Completion
The notary will send you a copy of the sales contracts for your records. You will then be sent the Management Company ‘MMV’s’ catalogues and an owners registration number, which you will need to quote when either staying in your property or using your owners’ discount to stay at other of the MMV properties. Should you have chosen an ownership formula with usage you will be sent a form every year asking you to select when you want to use your allocated weeks so that these may be reserved for you. There will be a telephone number dedicated to owners for all owner enquiries.
Contact us today to discuss further or request a brochure: