French mortgage specialist, Athenamortgages.com, said it expects the number of sales of leaseback properties in france to boom following the announcement by several French lenders.
French leaseback is a government introduced scheme offering various tax advantages and renewable lease periods on often managed and furnished properties.
UK investors have sometimes struggled to secure units in the face of strong competition for apartments from their French counterparts who have the added incentive of the Loi Scellier, a tax break from the French government that allows a portion of the value of the property to be offset against income tax liability.
Mortgages are available on a new-build French leaseback for 104% on a repayment basis from 2.6% and on an interest-only basis from 3%. French banks will finance up to 108% for a renovated leaseback at the same rates and some banks have increased the amount they will lend by 15% on certain French leaseback developments, said the firm.
The number of people applying for French investment properties has increased sharply in the last week since the Budget announcement, said the property firm.
John Busby, director, specialist French mortgage broker, Athenamortgages.com, said: “This is an unprecedented move that reflects the confidence of the French banks in the security of the investment and the developers. When you look at the return on investment for investors who have put very little money into a property purchase, even with minimal growth, the returns are impressive.”
