In the current economic climate, many French property owners are keen to maximise the equity they have tied up in their homes, or are looking to restructure expensive loans from 10 years ago.
An application will be subject to some conditions, notably:
- Released/drawndown funds can only be used for one of two reasons –
- (i) reinvestment/development of that property, or (ii) purchase/investment of another property.
- It cannot be used for ‘other’ – weddings, retirement, general living etc
- Minimum amounts for a lender to be interested usually €200k+ (disinvesting €20k to consolidate some debts won’t be allowed)
- Income/Affordability rules still apply, so demonstrating to the bank/lender that you have sufficient income to comfortably repay the loan (modest pension income is unlikely to fit the bill)
- The barrier to entry is often higher for non-French residents.
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