Financing a Chambre D'Hotes

Property & Home
1

Hello everyone!

Wondering if anyone can help. We are a couple from the UK looking into buying a Chambre D’Hotes in France and are struggling to find any kind of mortgage or finance. Is it even possible to purchase a property of this kind with finance? We have been turned away from many mortgage advisors now. Thank you!

2

Welcome to Survive France!

I am not an expert in any shape or form, but I think this is always going to depend on your individual circumstances - how much of a deposit you can contribute, how much you need to borrow, the value of the intended property and whether it will need renovating, and your track record at running a similar business in the UK.

I would guess you are finding it difficult as you are attempting the double whammy of buying a property on a mortgage while also starting up a new business in France, and presumably not having a guaranteed income until the CDH gets going?.

There’s lots of general information here which may help you:

3

Thanks for this … Nobody will even listen to the amount we can put down as a deposit unfortunately. It’s a ‘we don’t do mortgages or guts, chambre d hotes or commercial businesses’. Not sure what other options there would be other than this. Ideally we purchase an already up and running business which we have found examples of

4

Sounds like you need to find a commercial mortgage broker rather than one that does residential property?

Maybe a notaire in the area you are looking would know somebody? Or a French law firm that deals with commercial property?

2 Likes
5

Are you currently resident in France?

Are you asking in France or in the UK?

As foreigners resident in France you can get a prêt immobilier but I imagine you have a load of hoops to jump through.

1 Like
6

From the UK

7

Brexit won’t help either, more paperwork and hoops to jump through before they will even consider any loans plus they always need details of employment and monthly income that is stable. You would be better off buying an established business I think but you need to check out Visa requirements that are now needed for brits to live and work here first.

8

We seemed to have found the right visas. Had a lawyer chat last week and they have found options for this. Mortgage seems to be the halting point right now.

9

Mortgages were getting harder and harder to obtain since and during Covid and are only now really being offered again to keep the property market going. Being a foreigner and demanding a loan for anything now here is going to be harder unless you are already living and working here, they like to see proof of residency and income that is regular and not savings which can disappear overnight. Maybe you should consider renting for a year and getting into the various systems especially the tax and health ones which would make you look a bit more stable to any lender. France is very strict where banking and lending money is concerned, unlike the UK which seems very lax now in comparison.

1 Like
10

Chambres d’hôtes are classified as commercial businesses, and can only be run as such (louer meublé professional - LMP). So you have to have a business structure and take out a business loan/mortgage.

And you will need to have an entrepreneur visa that allows you to work, and this will require you to submit a business plan and get this accepted before you can get there visa. Don’t need a lawyer as all pretty clear on French visa website.

3 Likes
11

Thank you, I’m continuing to research business loan companies but being from the UK is the Achilles heel unfortunately.

12

Hello @Ale_Mu and welcome to the forum…

Any business in France involves a deal of paperwork and bureaucracy…
but, I’m wondering why you say “being from the UK is the Achilles heel” ??

Do you have compelling reasons for wanting to start up a business in France… ??
Are you already fluent in French??

13

Welcome, @Ale_Mu .

Could you tell us what position you’re in? I can think of three possibilities:

  • you’ve found an existing business which you want a loan to buy
  • you’ve found a property where you’d create the business
  • you are seeking agreement in principle for a loan.

With any of these, you may find yourself in a Catch-22 because the lender will want to be assured you can repay the loan, part of which will be based on your having the right to live in France and run a business …

whereas the government will want you to persuade it your income from your business reaches the minimum requirement, part of which will be based on your being able to obtain a mortgage!

1 Like