international mortgages

monaco

Essential information for buying properties in Monaco

Buying property abroad is not necessarily the same as buying in the UK, there is other essential information you need to be aware of both before and during your property purchase.

It is of paramount importance to seek independent advice from a French Lawyer

It is advisable to arrange your mortgage finance before agreeing to purchase a property..

You need to ensure that you will have full title to the property on completion and that you have the appropriate documents available for the lender.

Lenders will not advance funds to purchase or renovate properties that are currently uninhabitable They will consider applications, possibly on a reduced loan to value basis, where all the relevant planning permissions and building licences are in place. French builders must carry out the work.

The bank will require a signed copy of the “Compromis de Vente” prior to issuing a mortgage offer. However, you are able to sign this contract with the clause “subject to mortgage finance”, noting that once signed, the contract is legally binding.

You should be aware that not all French lenders carry out valuations and/or surveys. You may wish to have one carried out independently, and this is advisable as this will highlight any structural or building defects such as subsidence, damp, wiring etc. and most importantly, any valuation should point out any potential boundary disputes. The bank does not release any details, even if a valuation is carried out.

Properties can be purchased either individually, in joint names or in the name of a civil real estate company, known as an SCI (Societe Civile Immobiliere), under French civil law. For an SCI at least two people are required. If you need further advice or information regarding SCIs, check with a French independent lawyer.

You should check with the estate agent and/or your lawyer that you are aware of the costs charged by legal and Government authorities for buying a French property. The lender will also have their own legal costs for assigning the loan, the cost of which they will normally advise you when they issue the mortgage offer.

Please note that most mortgage offers have an 11 day cooling-off period from the day of receipt before they can be accepted and returned to the lender.

A French bank account and the relevant RIB (Releve D’identite Bancaire) will be required before the release of funds.

Eligibility and criteria

We typically arrange loans in Euros only
Repayment and Interest only loans are available
The maximum loan to value for a purchase is 85%
The maximum term is 30 years up to age 75
The minimum loan amount is £50,000 with no maximum

Affordability

To qualify for a mortgage in Monaco, a calculation is used to establish whether you can afford to maintain the mortgage repayments. This will automatically happen when you complete our enquiry form, and we will not charge you for this service.

Your existing liabilities, including your UK mortgage or rental payments, loans, credit card payments and maintenance are taken into account, together with the proposed Monaco mortgage payments. All this must not typically exceed 35% of your monthly net income. For example if your net joint income is £2500, 35% of this equates to £875. If your only liability is your current UK mortgage payment of say £300 per month, this would leave a balance of £575 for your Monaco mortgage repayment.

The amount that you can borrow is also restricted by the maximum loan to value as mentioned under Eligibility and criteria.

Proof of income requirements

If you are employed:

Your last three month’s payslips
Your latest P60 and employers reference
Your last three month’s personal bank statements

If you are self-employed:

Your last two year’s audited accounts, tax returns and accountants reference
Your last 3 month’s personal bank statements

Other documents will be required and will be confirmed when application forms are sent to you.

If you would like to speak with a representative to discuss your requirements please call +(34) 677 874 948

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