Mortgage for a Leaseback Property in France

Aug 11, 2003 2 Replies

I am looking for a mortgage on a leaseback property in France. The yield is, guaranteed for 11 years 6% net of all taxes. But .... I have spoken to a couple of mortgage brokers and well my income multiples to cover the mortgage are well, a bit short. Nobody I have spoken to though can include the rental income from the new property - which effectively covers the whole mortgage, and also means I am covered on the multiples. Any advice /pointers in the direction of someone who could help. Property by the way is on the market for 440K euros. Thanks.


"Simon" wrote

Who is the tenant - The Government? Bill Gates? [otherwise how can you be sure that they won't default?]

And even with those most solvent of tenants, how still can the net yield be guaranteed in a world of varying mortgage and tax rates.

Tony

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