Lawyer - Mortgages
Make an appointmentA mortgage contract commits the borrower to often very large sums of money, for a period that can exceed twenty years. In the event of irregularity, dispute or difficulty in performance, the consequences can be serious, both financially and in terms of property. Solent Avocats intervenes at every stage in the life of the contract, from its formation to its contestation or renegotiation, to assist its clients - borrowers or credit professionals - with rigour, technicality and strategy.
Our practice in banking and finance law, real estate law, enforcement law and securities law enables us to take a cross-disciplinary approach to real estate lending. In particular, we act in matters of banker's liability, property seizures, and litigation relating to borrower's insurance and mortgage guarantees.
Whether there is an irregularity in the loan offer, an error in the APR, a breach of the duty to warn or a dispute arising from difficult performance, our firm applies a rigorous method of analysis, geared to protecting its client's interests. We also assist the self-employed and people wishing to obtain a property loan for the purchase of their principal residence or a property intended for rental.
For an initial legal assessment of your contract or your financial situation, contact our firm.
Solent Avocats is...
We defend your interests in mainland and overseas France
Home loan offer: checking validity and legal issues
The offer of a home loan must comply with a strict set of formalities: compulsory details, loan repayment terms, term, total effective interest rate (TAEG), total cost of the loan, application fees. Failure to comply with these requirements can have major consequences: forfeiture of the right to interest, or even nullity of the contract. The seller's commitment, the type of security required and the borrower's financial situation are key factors in the granting of credit.
The law also imposes an incompressible cooling-off period of 10 days, during which the borrower may not accept the offer. Any pressure exerted during this period or any early acceptance is liable to be penalised. The contract is often conditional on the borrower making a downpayment and the mortgage application being approved by a bank or credit institution.
Have your loan offer analysed before making any major decisions.
Lenders' duties: warning and information
Home loans are often granted to unsophisticated borrowers. The lender must therefore assess the borrower's ability to repay the loan and the remaining debt, based on the borrower's income and expenses. The lender has a duty to inform and warn. This duty is reinforced in the case of a property purchase or a transaction involving a business or commercial lease.
Where the credit presents a risk of excessive debt, the lender must give a clear warning. Failure to do so may result in contractual liability. The borrower may seek compensation for the loss suffered. The firm also advises people who have given a guarantee without measuring the associated risks.
Our firm can establish whether your lender has breached its obligations.
Wrong rate, unfair terms, disputes over performance
An error in calculating the APR may result in forfeiture of the right to interest. Other clauses, such as penalties or capitalisation of interest not provided for in the contract, may be challenged. The Court of Cassation has reiterated that clauses that infringe fundamental rights can be annulled.
Disputes may also arise in connection with a lease with a purchase option or a partial sale of the property. The courts take a close look at contracts linked to mortgage guarantees, particularly in the case of adjustable-rate loans.
3 mistakes not to make in the event of a dispute over a mortgage :
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Do not check the loan offer before accepting it.
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Accept an interest rate without demanding a detailed APR calculation.
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Failing to ask for a full copy of the contract before signing.
In the event of a fault, prompt action can avoid lengthy and costly disputes.
Debt reduction and restructuring: tools for rebalancing
Borrowers in difficulty can ask for repayments to be suspended or consider a restructuring assistance plan. It is essential to take action before the property is repossessed. Recourse to the debt commission or a court-ordered reorganisation plan may also be considered.
Our firm also assists professionals faced with the sale of assets or the repayment of loans in the event of difficulties in meeting repayments.
Our approach aims to provide legal certainty at every stage of the renegotiation.
Why call on Solent Avocats?
For a personalised review of your case, contact our office without delay.
Frequently asked questions
How can I check whether my loan offer is legally valid?
The offer must contain all the information required by the Consumer Code, in particular the APR, the total cost of credit, the guarantees required and the repayment terms. Any irregularity may give rise to a dispute.
Can the APR shown in my contract be contested?
Yes, an error in calculating the APR can result in forfeiture of the right to interest. However, proof of the error must be provided. A precise legal analysis is then essential to obtain compensation.
Was the bank obliged to warn me?
If there is a risk of over-indebtedness or a complex transaction, the lender must give you a clear warning. This duty to warn is a legal obligation which, if breached, may render the credit institution liable.
What recourse do I have if I can no longer repay my mortgage?
A request for renegotiation, over-indebtedness proceedings or a conventional plan may be envisaged. A lawyer specialising in property law can provide you with effective support in this process.
Do you also handle disputes between private individuals and foreign banks?
Yes, we also handle cross-border mortgages, particularly where the contract is subject to foreign law or to a jurisdiction outside France. We can advise you on the applicable regulations and the means of defence available.
What documents do I need to prepare for an initial consultation?
It is useful to bring: the loan offer, the signed contract, the exchanges with the bank, the amortisation tables, the monthly instalments paid, the elements linked to the bank account, as well as any document useful for reconstructing your situation.
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