SCI property loan: buy, renovate or refinance with your SCI
Purchase, works, refinancing or repayment of current accounts: what the bank asks of the SCI and its partners, and how Hyppo seeks financing from its partner banks.
A personal reply from an adviser
- Family or wealth SCI, under income tax or corporation tax
- Purchase, works, refinancing, current account
- File presented to partner banks
Does your SCI want to buy, renovate or refinance a property, or repay a shareholder current account? Hyppo prepares the file for the company and its partners, then presents it to its partner banks.
For which projects?
Buy a rental property, premises or a building in the SCI's name.
Renovate or extend a property it owns.
Refinance a property that is already paid off to release liquidity.
Repay a shareholder current account or fund a deposit.
As a guide: a project over €200,000, property in mainland France and tax residence in France. Each bank assesses the file case by case.
Examples of SCI projects
Buying an investment building
A family SCI buys a small rental building. Hyppo presents the expected rent, the articles of association and the partners' situation to the banks.
Renovating an SCI property
Energy renovation, extension, bringing up to standard: the SCI finances works on a property it already owns.
Releasing cash from a paid-off property
The SCI borrows by mortgaging a property that is already paid off, to finance a new project or repay a shareholder current account.
What Hyppo does for you
- 01
Analysis of the articles of association, accounts and assets of the SCI and its partners.
- 02
Proposing a structure: amortising or interest-only, guarantees, personal guarantees.
- 03
Presenting the file to its partner banks and negotiating the offers.
- 04
Follow-up through to signing at the notary's.
How it works
A first conversation about the project, the property and the partners.
The file: articles of association, Kbis extract, latest tax returns, leases and title deeds.
Presentation to the banks, agreement in principle, then valuation of the property.
The loan offer, signing at the notary's and release of funds.
Why go through Hyppo for your SCI?
A file built for the bank
Articles of association, accounts, leases, partners' assets: Hyppo gathers the documents and presents the SCI the way the lender looks at it.
Several banks consulted
The file is presented to partner banks, to compare offers rather than wait for just one.
A suitable structure
Amortising or interest-only, guarantees, partners' personal guarantees: the proposal takes account of the SCI's tax regime, under income tax or corporation tax.
A registered broker
Hyppo (REFI Technologies) is registered with ORIAS under number 23005573 as an intermediary in banking operations and payment services.
Frequently asked questions
Another question about your situation? A Hyppo adviser will answer.
Can a family SCI borrow to buy a property?
Yes, like any SCI: the bank analyses the expected rent, the partners' situation and the articles of association. The family relationship changes neither the partners' liability, which is proportionate to their shares (article 1857 of the French Civil Code), nor the consent required when the manager's powers are not sufficient.
Do the partners have to guarantee a loan to the SCI?
The law does not require it, but the bank often asks. Without a guarantee, a partner is liable for the SCI's debts only in proportion to their shares, and only after the company (articles 1857 and 1858 of the French Civil Code). With a joint and several guarantee, the bank can pursue them directly, up to the amount written in the deed.
Can an SCI borrow to repay a shareholder current account?
Yes, if the operation falls within the company's purpose and serves the SCI's interest. It then borrows by mortgaging a property it owns, and the bank may ask for the other current accounts to be frozen. Under income tax, the deductibility of interest depends on the use of funds (BOFiP BOI-RFPI-BASE-20-80): have it validated by your accountant.
