Last update for this week..
Post yesterdays 0.25% ECB base rate rise, today we received our first written, confirmed offer of finance. 4.27% fixed for 15yr. 5k ‘hypotheque’ or in english mortgage documentation/arrangement fee and 0.348% mandatory insurance cost. Total 4.63%. There we are, the days of the cheap Euro mortgage that others have talked about earlier in the thread are gone.
This was the same bank who last month indicated that 4.1% base was possible, they seem to have tried to pass on as little of the ECB base rate rise as possible, as this rate is only very marginally above the base rate. They have also included the no early repayment penalty clause I have insisted on, this means we could refinance when rates come down.
We expect another two offers tomorrow and Monday, then the final two ten days after that.
Having received an offer of finance we now have 7 working days to communicate to the vendor the 1st offer under French law. We are obliged under French law to obtain two competing offers. Assuming the one tomorrow is also way beyond the 3.75 limit we are no longer under obligation to buy.
We have developed a plan to obtain hard quotes on some key investment stuff, and have been walking the site each evening to check occupancy. With this we will develop some forecasts proving that the site will not do well this year. Whether it’s the July weather (terrible, raining, cloudy), the cost of living crisis (c) BBC, or the diminished reputation I don’t know, but fact is it is only on track to make about 66-70% of what it made last year. This is in start contrast to all the endless assurances of the vendor that he was on track to make the same as last year. Seems he’s a bit of a billy bullsh*tter. We begin to understand why the staff are so disinterested/lazy/malevolent.
Armed with the estimates for all the additional investment, the performance analysis of this summer and the extreme and now non binding cost of finance we plan to organise a meeting with the vendors in approx 9 days to formally request a price reduction. We know this won’t go down well and suspect we will have to up sticks pronto, a shame as we are developing our ideas daily and refining where we need to spend cash.
We both still love the place, despite all the huge required work, and we really believe we can really make this thing fly, but we just can’t afford to overpay, especially at the rebased 1st year income start point, the extra investment and the high interest rates.
Wish us luck !
Post yesterdays 0.25% ECB base rate rise, today we received our first written, confirmed offer of finance. 4.27% fixed for 15yr. 5k ‘hypotheque’ or in english mortgage documentation/arrangement fee and 0.348% mandatory insurance cost. Total 4.63%. There we are, the days of the cheap Euro mortgage that others have talked about earlier in the thread are gone.
This was the same bank who last month indicated that 4.1% base was possible, they seem to have tried to pass on as little of the ECB base rate rise as possible, as this rate is only very marginally above the base rate. They have also included the no early repayment penalty clause I have insisted on, this means we could refinance when rates come down.
We expect another two offers tomorrow and Monday, then the final two ten days after that.
Having received an offer of finance we now have 7 working days to communicate to the vendor the 1st offer under French law. We are obliged under French law to obtain two competing offers. Assuming the one tomorrow is also way beyond the 3.75 limit we are no longer under obligation to buy.
We have developed a plan to obtain hard quotes on some key investment stuff, and have been walking the site each evening to check occupancy. With this we will develop some forecasts proving that the site will not do well this year. Whether it’s the July weather (terrible, raining, cloudy), the cost of living crisis (c) BBC, or the diminished reputation I don’t know, but fact is it is only on track to make about 66-70% of what it made last year. This is in start contrast to all the endless assurances of the vendor that he was on track to make the same as last year. Seems he’s a bit of a billy bullsh*tter. We begin to understand why the staff are so disinterested/lazy/malevolent.
Armed with the estimates for all the additional investment, the performance analysis of this summer and the extreme and now non binding cost of finance we plan to organise a meeting with the vendors in approx 9 days to formally request a price reduction. We know this won’t go down well and suspect we will have to up sticks pronto, a shame as we are developing our ideas daily and refining where we need to spend cash.
We both still love the place, despite all the huge required work, and we really believe we can really make this thing fly, but we just can’t afford to overpay, especially at the rebased 1st year income start point, the extra investment and the high interest rates.
Wish us luck !
