[ad_1]
An estimated 200,000 Britons have taken the plunge by owning a holiday home or second home across the Channel in France. The UK finally left the European Union to regain control of its money, law and borders on December 31, 2020. Freedom of movement between the UK and the EU27 ended with the British adoption of an Australian-style points-based system.
Britons can still travel to Europe without the need for a visa, but their stay in the majority of EU countries will be limited to 90 days in any 180-day period.
For those lucky enough to have a second home abroad, they must now either limit the length of their stay or apply for a visa in the country concerned.
But real estate expert Eddie Sammon, who specializes in finding accommodation for British expatriates in France, denounced a French bank for its bizarre requests.
Harrison Brook Mortgages’ mortgage broker has revealed that he was approached by an anonymous bank, which requires Britons to demonstrate that they are a ‘high net worth or high income person’ when applying for a loan for a secondary residence.
He said in one case prospective second home owners must demonstrate that they each earn at least £ 150,000 per year or have £ 500,000 in net assets.
Mr Sammon explained that the rules would not apply to those who wanted to make the house their primary residence or were planning to rent the property.
Speaking to French news site The Local, he said: “For the bank in question, UK residents wishing to obtain a mortgage for a second home in France will need to be able to demonstrate that they meet the conditions for be classified as Worthy or High Income Person.
“Unless they buy their primary residence or a property that will be largely rented out. British citizens who are tax residents in France will not be affected.
“To be classified as a high net worth or high income person you will need to earn at least £ 150,000 per year or have £ 500,000 in net assets.
“For couples, this is mandatory for each borrower.
“If the two potential borrowers do not meet the criteria, then the only possibilities will be a mortgage for a principal residence or for a property that will be mainly rented out.
READ MORE: Brexit LIVE: Sturgeon makes ‘humiliating’ SNP U-TURN on Brexit
He says: “The rules regarding property, rent, taxation and shared ownership have not changed.
“However, if you are buying new property, some EU countries have different property acquisition laws for EU citizens and non-EU citizens.
“Check with local authorities how this may apply to you.”
[ad_2]
Source link
