BARNES Mont-Blanc and its 7 real estate agencies in Savoie, Ain and Haute-Savoie, enlighten you on the specific financing of a house or an apartment off-plan.
First step: the loan application file
As part of a VEFA, the mortgage application file to be presented to the bank for the financing of your project must contain specific documents: in addition to the traditional bank statements, proof of income and charges, you must effect provide a reservation contract drawn up by the promoter. To grant a VEFA mortgage, banks want to ensure not only the reliability of the buyer-borrower, but also that of the project and its promoter. It will therefore be necessary to provide all the supporting documents and guarantees provided by the property developer. The reservation contract, essential to the file, indicates the precise characteristics of the property and its address, its price and possibly the payment schedule, the delivery time, the estimated date of signature of the sales contract, the condition precedent for obtaining of the loan, the conditions of the right of withdrawal.
The phasing of the financing and the interim interest
Payment for off-plan property is necessarily staggered, according to levels strictly defined by law (article R261-14 of the Construction and Housing Code). In order to protect the interests of buyers, the law regulates this staggering by setting ceilings at each stage of construction. Promoters can therefore not ask for more than:
- 35% of the total price when the completion of the foundations is validated
- 70% when putting out of water (roof installed and waterproofing validated)
- 95% upon completion of the building
- The remainder is then paid on delivery
In compliance with these ceilings, it is possible to add steps: for example, it is usual to ask for a deposit of 5% when signing the reservation contract. Other levels can be put in place, such as 50% of the total price upon completion of floors, or 80% upon venting and completion of partitions.
It should be noted that the staggering framed by law for a off-plan sale differs from that of a sale in CCMI for the purchase of a single-family house from a builder: in the latter case, the successive payments are capped, at the same stages of construction, respectively 20% (foundations), 45% (excluding water), 85% (completion).
At each payment level, the promoter sends a call for funds. In the event of a loan, the bank therefore releases the sums as and when they are due. This staggered release of funds generates interim interest, which increases as construction progresses until it reaches its maximum when the full price has been paid.
There are several ways to amortize a mortgage taken out as part of a VEFA:
- Start repaying as soon as the sales contract is signed
- Start repaying when the keys are handed over, but pay the interim interest monthly during construction
- Defer interim interest and only start repaying the loan plus this interest after completion of the property
The choice will be made, in agreement with the bank, according to your situation: deferring the repayment of the loan at the time of delivery may be necessary, for example, if you have to pay rental charges before moving into your new VEFA apartment near the ski slopes in Megève or Ville-la-Grand.
Payment of condominium fees
The co-ownership charges are not payable until the completion of the acquired lot. If the new good was delivered during the year, the trustee is not able to claim from the purchaser the payment of charges corresponding to a full year. Thus, if the principle of a sale in the future state of completion is to become the owner of the work as and when it is carried out (by virtue of the staggered payment schedule), this principle does not apply. does not apply to condominium fees, which are only due when the property is usable.
Interested in a VEFA purchase between lake and mountain? Do not hesitate to contact one of our BARNES Mont-Blanc advisers now!