Arranging Bridging Loans in France

Bridging loans aren't as common as mortgages, so you might not be familiar with them. You should always consider the advantages and potential pitfalls of this kind of loan before you use it and ensure you're comfortable with how lenders will set up the loan and what it will help you achieve. We can walk you through all these details and will help you understand if bridging finance is the right option for you – we will never suggest you use a bridging loan if we don't believe it's the best type of finance for you or if doing so would present undue risk. 

You can use bridging finance in France in lots of different ways, which is one of the key advantages of this type of loan. You'll most frequently use bridging finance to access the capital you need to buy a house quickly in France, given we can arrange these types of deals in just a couple of weeks or less. You might want to take this path because a French mortgage isn't the right option for you or because a mortgage will take too long to arrange in the context of how quickly you want to complete the property transaction. Many borrowers use a bridging loan to buy property fast and then exit by refinancing via a mortgage, giving them time to arrange the long-term financing package (usually a mortgage) they're most comfortable with. This is a perfect example of how you can use bridging finance to create an ideal outcome for you.  

You can also use bridging finance to unlock equity from unencumbered real estate in France. You can use the capital provided by equity release to consolidate debt or to create the liquidity to invest, purchase additional real estate or assets and so on.

• Dry lending: Minimum €500k (property purchase must be at least €650k).

• Private banks: Typically €2 million, with at least €1 million in assets under management (AUM).

• Bridging finance: From €3 million+, usually requiring the property to be held via a company (French SPVs are not accepted).

• Bridging finance: Up to 60% LTV.

• Developments: Up to 50% of the development cost, with at least €10 million AUM required.

• Retail finance: Maximum 75% LTV; for private bank loans, 100% LTV is possible if minimum requirements are met (property value €2m, loan €2m, AUM €1m).

• Equity release: Minimum property value €4 million; up to 60% of the property value.

No. Loans must be based on a single property meeting minimum loan requirements. Portfolio aggregation to meet minimum amounts is not accepted.

• Private banks and bridging loans are best suited for high-value residences.

• Châteaux, country houses with land, and event spaces are generally not feasible.

• Middle Eastern nationals often have flexible options, including interest-only loans.

• Commercial properties require review; consult CW for individual deals.

5. Are there any special considerations for moving assets or refinancing?
Yes. It is possible to move AUM from one bank to another to meet financing requirements, allowing clients to leverage existing wealth for property finance.

Selecting the right broker is essential for a successful French bridging finance experience. Look for a company with a proven track record in the French market and a deep understanding of bridging loans and property finance. The best brokers have strong connections with a variety of lenders and private banks, enabling them to offer clients a wide range of competitive bridging loan options.

It’s also important to consider the broker’s reputation, client testimonials, and their ability to communicate effectively, especially if you are an international client. A knowledgeable broker will be well-versed in French mortgage regulations, property value assessments, and the specific requirements for non-residents seeking property in France. By choosing a broker with the right expertise and network, clients can ensure a smooth, efficient process and secure the best possible terms for their French bridging loans, whether for residential or commercial property.

Yes. Expats and international investors can obtain bridging loans in France, although lenders require extensive documentation. Non-resident borrowers may need certified translations of income statements, tax returns, and company records. Compliance with French anti-money laundering rules is also strictly enforced.

Most bridging loans in France are provided in euros, reflecting local property values and registration rules. For larger transactions, some private lenders may offer facilities in other major currencies, though exchange rate risk and hedging must be carefully managed.