How can you change the validity of a mortgage ?
Published on :
19/05/2025
19
May
May
05
2025
The Practice is regularly questioned by English speaking owners who have purchased properties in France financed by a mortgage with a French bank.
Owners can no longer pay monthly instalments of the mortgage because of financial issues.
Many owners believe that the bank is at least partially responsible for the situation.
Owners wish to implement a procedure against the French bank to challenge the validity of the mortgages and claim for compensation for professional negligence
Professional negligence
French court rarely award owners substantial compensation based on bank’s professional negligence.(Please refer to earlier post on this topic)
Validity of the mortgage
Another method used by debtors to challenge the sums claimed by the bank is to question de validity of the formation of the contract.Indeed, the signature of a mortgage is subject to strict and mandatory stipulations of Consumer Law.
The mortgagee must notably have a ten-day cooling off period from date of reception of the mortgage offer (by recorder delivery) before signing and returning the contract.
Judges usually demand that the bank proves date of reception by producing copy of envelope with stamp.
Further, the mortgage offer must mention the “TAUX EFFECTIF GLOBAL” (“effective interest rate”).
If the offer does not comply with these rules interest and penalties are no longer due. Only the capital is due.
Owners who are encountering difficulties with their bank should contact the practice.
History
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How can you change the validity of a mortgage ?
Published on : 19/05/2025 19 May May 05 2025Firm newsFirm news / INTERNATIONAL REAL PROPERTY DISPUTES IN FRANCE
The Practice is regularly questioned by English speaking owners who have purchased properties in France financed by a mortgage with a French bank. Owners can no longer pay mo...
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Why must owners pay eviction penalty in case of termination of commercial lease ?
Published on : 19/05/2025 19 May May 05 2025Firm newsFirm news / INTERNATIONAL REAL PROPERTY DISPUTES IN FRANCE
Under French law, a landlord must rent a commercial premise (a shop, a factory, a restaurant), under a commercial lease (“BAIL COMMERCIAL”); for a minimum mandatory duration of...
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what is the duration of French commercial leases “bail commercial” when signed with the operator of a tourist residence “residence de tourisme” ?
Published on : 19/05/2025 19 May May 05 2025Firm newsFirm news / INTERNATIONAL REAL PROPERTY DISPUTES IN FRANCE
Commercial leases “bail commercial” are intended to organise the occupation of a commercial premises (a shop, a factory, a restaurant). They must not be confused with professio...
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how to terminate a commercial lease « bail commercial » ?
Published on : 19/05/2025 19 May May 05 2025Firm newsFirm news / INTERNATIONAL REAL PROPERTY DISPUTES IN FRANCE
Under French Commercial Code “Code de Commerce” commercial leases are signed for a minimum period of 9 years. Except special circumstances (see below) owners cannot terminate...
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Can a bank be sued for professional negligence by granting a mortgage to a consumer?
Published on : 19/05/2025 19 May May 05 2025Firm newsFirm news / INTERNATIONAL REAL PROPERTY DISPUTES IN FRANCE
It is case law that a bank must warn the borrower/consumer about the financial risk resulting from a loan. A bank must notably warn the consumer about the risk of over-indebted...