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Which bank offers low interest rates on mortgages to a building society (Apartment block)

ukexpat
Aug 30, 2015
5
Question

Dear xpats, I live in a building that has 60 apartments. As a society, we want to take out a mortgage for some renovation works in our building. Please note that the mortgage is not for my personal apartment. We have been to ING and Belfius but aren't happy with the rates they have offered us. I was wondering if anyone can recommend a bank for this purpose? The project has been delayed for over six months and we want to get the money so the works can start. Thanks in advance.

J

Given that we don't know your personal financial circumstances, we can't know what you should be happy with.

If you want to keep those private, try a mortgage broker like Immotheker.

Aug 31, 2015 01:14
ukexpat

Thank you for your reply. I am not seeking a loan for my apartment. We want to carry out works in the entire building and not my apartment. We have elected 3 presidents to run the day to day affairs of the building and we have a syndic. We want the bank to loan us €220,000 and we would like to pay this amount off in 5 years (there are 60 apartments in the building). I hope this information helps.

Aug 31, 2015 09:36
J

Hmm. I see the problem.

I can't see you getting anything like the sort of deal you'd get on this sort of loan as you would on a mortgage. The bank would basically need to loan the money to the Syndic who would then be responsible both for the repayments and for the collection of the money through the next 5 years. To the bank, that's going to be an unsecured loan, as they can't exactly sell the property to recover their money should the syndic go bust and default.

I think you'll got a rate that is comparable to a personal loan rate, and I think anything under 8% is probably quite good.

See maybe this for ideas on who else to approach:
http://www.guide-epargne.be/epargner/comparer/emprunt-pas-cher.html

Aug 31, 2015 13:44
becasse

With 60 apartments, it might be worth finding out if some of the owners might be interested in providing part of the required loan. With interest rates for investors not that far off 0%, some might be tempted by a rate that was less than you would have to pay a bank.

Aug 31, 2015 14:30
Rupert

Is it possible to create a fond de reserve instead of a bank loan? I was looking at buying an apartment where works were necessary in the building but the bank was constantly refusing to loan it. A lot depends on the financial situation of the copropriete, whether all charges are paid on time each month etc.

220000/60 added on to monthly charges would be 150 per month over 2 years or 100 per month over 3. This might be the better option

Aug 31, 2015 16:24