Athena Mortgages the NO 1 choice for a French mortgage or French Equity Release.
The Pierre and Vacances group (P & V) have recorded property sales of classic and French leaseback property to the tune of over 300 million matching the total from the previous year. This success in spite of the economic conditions has created a bullish atmosphere at the head quarters in Paris, France, so much so that the target set for the new year has been doubled.
With a new Center Parcs property just launched in Isere near Lyon with over 1000 cottages for sale, the continuing good sales at flagship ski developments in Avoriaz under the brands of MGM, Maeva and Pierre & Vacances, the plans for a huge new nature Eco park near to Euro Disney called the "Village Nature" and various other new developments in European city centre under the Adagio brand, there is certainly enough property to meet the expected demand.
Investors in France have been buying P & V developed and managed property for over 40 years as a long term investment and pension complement. A leaseback with P&V offers a secure income stream, which can be accessed without the hassles and worries of ownership. Demand across France has increased recently due to the tax breaks offered by the new Loi Scellier which adds to the already attractive tax regimes for leaseback properties. Investors benefit from a refund of the VAT on new build properties of up to 19.6%, rental income which is virtually tax free after deductions and with no capital gains tax after 15 years of ownership, it is clear to see the attractions to the investment on both sides of the channel. The interest in this investment type is growing in the UK and Ireland with many IFA networks offering leasebacks as standard due to the security of the investment and the strength of the management company, the pension grade guarantee behind the rental income. The pension crisis is also driving the demand for leaseback property as people realize they need to diversify their portfolio in the face of massive underperformance of pension funds on the stock market.
According to John Busby of Athena Mortgages who arrange French mortgages for all the international buyers of P & V property investments, there has been increasing activity in the last 2 months. "Sales at the P & V international office in London have been steady over the last year owing to the solid credentials, the brand and track record of P & V and the excellent borrowing conditions in France. With rates now at historic lows, the likelihood that they will increase in the coming year or so and the availability of mortgages at up to 100 per cent we see this as the perfect time to buy a property in France". Nick Leach UK manager for P & V property investments agrees. "Many of our UK based investors are attracted by the 100 per cent loans as a method to offset the weaker sterling. These loans are not at high rates and loans over 25 years start as low as 2.95%.
Only time will tell if this ambitious target will be met but in the light of the conservative targets and behavior of the P & V group over the past 40 years this positive stance bodes well for the economies on both sides of the channel.
