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Your Essential Guide to Buying a Property in France
March 11, 2012 | 
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Step 1
You find a property in France and intend to finance the purchase with a French Mortgage using no less than a 20% down-payment from your own funds – Remeber the total fees payable to the notaire can be in the region of 7% – 10% of the purchase price. The whole process of completing a mortgage on a French property from the moment you sign the compromis de vente takes around 60 days. Consider appointing your own English-speaking notary to co-ordinate the transaction.
Step 2
You will sign the Compromis de Vente (sales agreement), ensuring that it contains the ‘Clause Suspensive’ stating that the purchase is dependant on obtaining of a French Mortgage. If the bank declines the loan then all monies including the deposit will be returned to the buyer in full. There will be a time limit for applying for the mortgage stipulated in the ‘compromis de vente’. Normally this is around 30-45 days.
Normally the date set for the signing of the title deeds of the property is set around two months after signing the compromis de vente. This is the time it takes for the notaries and the authorities to take care of all the due diligence procedures associated with transferring the title deeds of a property.
It is important that the financial details of the operation: the loan amount, the name of the lending bank, the interest rate, the length of the loan are all defined in the compromis de vente to avoid problems later. In many cases we suggest you fax a copy of the compromis de vente to your Independent Mortgage Broker in France so that we can ensure that the financial details of the purchase are correctly defined to protect your interests.
If you do not intend to obtain a loan, you are expected to write in your own handwriting that you intend to give up your rights under the law. This is not always wise, should you subsequently decide to obtain a loan, and fail, then you will lose your deposit.
Your Independent Mortgage Broker in France will describe the different types of French Mortgages and loans available to you and will help you to select the best type of loan based on your circumstances and the banks lending criteria. Independent Mortgage Broker in France will send you a quotation to give you an indication of your monthly payments and will ask you to provide some further basic financial details.
At this point you may wish to appoint your own notary to oversee all aspects of the transaction. Contrary to many reports, the appointment of your own notary does not incur any extra costs. Your Independent Mortgage Broker in France can recommend English-speaking notary services at no extra cost to the purchaser. Be wary of signing a compromis de vente without an escape clause in the event of your mortgage not being approved.
Step 3
You complete the lenders application form provided by your Independent Mortgage Broker in France for the loan, along with a medical questionnaire and send it to your Independent Mortgage Broker in France together with photocopies of the supporting documentation.
Note:The original application form and medical questionnaire will need to be returned along with photocopies of all of the other documentation required.
Step 4
Your Independent Mortgage Broker in France will confirm receipt of all the documentation and advise you of any documents still to be provided. Your Independent Mortgage Broker in France will then pass the complete file on to the lending bank for a “first reaction.” at this point arrange the opening of a French bank account.
Step 5
The lending bank will provide your Independent Mortgage Broker in France with their first reaction. This usually consists of a conditional loan approval subject to obtaining any missing documents from the original list. Your Independent Mortgage Broker in France will immediately forward this report to you.
Step 6
You supply missing documentation (if any) to your Independent Mortgage Broker in France, which is passed on to the French bank. The file/dossier, once complete, then proceeds to the French bank’s lending committee for final approval.
Step 7
At the same time the bank will authorise an independent valuation of the French Property that you are purchasing. It will be necessary to coordinate with the owner/real estate agent for the independent evaluator to access the property.
Note: Make sure your Independent Mortgage Broker in France has the contact details of all the relevant parties in the transaction in order that we can short-cut any potential problems.
Step 8
Within 10 days of receiving all the required financial information, the lending bank will be able to give a decision on your French Mortgage loan application. Often the response is “Yes”, subject to life assurance.
Note: Talk to your Independent Mortgage Broker to advice you on putting this poilcy in place.
Step 9
Once all the medical formalities have been taken care of, the French Mortgage Offer will be issued and sent by post to your normal postal address. A duplicate will be sent to your notary so that they can start drawing up the final documents for the title deeds. The notary needs a copy of the loan agreement before he/she can draw up the final documents. At the same time your Notary be able to calculate all the fees including the land registry fee which is a percentage of the loan amount. The notary will be able to tell you the exact amount of these fees and you should be ready to pay them by a French bank cheque or transfer them from your domestic account on or before the day of signing.
Note: Make sure your local GP completes the medical forms provided by the bank. Most medical officers representing the banks will not accept medical information more than three months old.
Step 10
Once you receive the loan offer contact your Independent Mortgage Broker in France will give you precise instructions on how to complete the acceptation letter and answer any questions you may have about the loan. Remember, under French law, there is an 11 day cooling off period before you legally accept the French bank’s loan offer.
Step 11
Once the loan acceptance letter has been returned to the French bank, the bank will transfer the funds you have borrowed to the notary, usually in the 48 hours preceding the date set by your notary for signing the final act. You will arrange for the transfer of the down payment plus notary fees to the notary’s account. The notary is responsible for informing you of the precise sums. Make sure you leave sufficient time for the funds to arrive in the notary’s account; especially if the funds are being transferred from abroad. You may wish to use the services of a specialist foreign currency provider to obtain the best exchange rate. Your Independent Mortgage Broker in France can advise you on this issue.
Step 12
Congratulations! Finally you sign at the notary’s office. Be prepared for a minimum of two hours at the office. Usually a translator is provided for a small fee, payable to the notary by a French bank cheque on the day. It may also be possible to sign by proxy; you should set up this arrangement (if required) well in advance with your notary.
Note:Your first mortgage repayment will come from the direct debit you have set up with your French bank. Within six weeks the bank will also draw down any bank arrangement fee as stated in the loan offer (usually between 700 and 1200 Euro). You should make sure there are sufficient funds in the French bank account to cover both the first monthly payment and the bank’s arrangement fee. Remember your property is at risk if you do not keep up your mortgage payments!
Matt Frost, the founder and managing director of French Mortgage Xpress, established the company in 2004 after working within the financial services industry in France and realising that there was a demand for an English speaking brokerage service specialising in loans for non-residents.
French Mortgage Xpress soon became a major force for non-resident French Mortgages, with a reputation for speedy responses and a reliable service in a difficult area of French finance. French Mortgage Xpress has now processed more than 500 mortgages for non-residents buying in France and has built up a wealth of experience to assist the first-time buyer in France. Similarly, French Mortgage Xpress has a solid reputation with the French Banks, ensuring that all the clients of French Mortgage Express are guaranteed a first-class service when their loan request is presented to the lending banks.
French Mortgage Xpress prides itself in delivering an A-Z – fast, efficient and professional service working with the customer throughout the loan approval to final completion.
For further information please visit the French Mortgage Xpress website or call now on +33(0)4.92.98.80.70
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Buying Property in France: Which is Better – A UK or French Mortgage?
There are a number of reasons for taking out a mortgage to finance your property in France aside from the obvious necessity for extra funds.
Firstly, it can be a good way to invest even small amounts of capital if it is possible to leverage a sizeable mortgage that will be covered by the rental return of the property. Any increase in the value of the property could reap great rewards on just a small investment of say 10 or 15% of the value of the property.
Secondly, you may have other priorities for your money such as your own business investment, shares or renovation works to your property that you view as bringing a greater return on your investment.
Thirdly, it can be a great way to reduce the inheritance tax liability on your French property by lowering its net value – especially if the inheritance rates are higher in France than back home.
Increasing Your Domestic (UK) Mortgage:
This can be the easiest way to get your mortgage as there will be far less paperwork and initial set up fees. Money comes out of your bank account in the currency in which you are paid thereby making it easier to forecast your budget …. BUT …. Interest rates in the UK are currently higher than those on the continent so repayments could be reduced substantially by raising the mortgage in France.
Getting a Mortgage in France:
Interest rates are likely to be lower than current UK rates.
Your assets and liabilities will be balanced so that if the mortgage cannot be paid you do not lose your home in the UK, just the one in France.
Your UK property will retain its equity so that it is available if you need to use it to borrow money in the future in the UK.
If your French home is rented out then you can offset the mortgage repayments against rental income so that your tax liabilities are reduced.
Inheritance tax can be reduced by taking out a mortgage on your property in France as this will reduce its net value.
BUT ….If you live and work in the UK, then you are at the mercy of exchange rate fluctuations so that if the Euro suddenly appreciates in value you will have to make larger repayments from your English account to cover the mortgage. For example, if the exchange rate moves from 1.6 to 1.4 Euros to the pound (an appreciation in the value of the Euro), on a 200,000 Euro mortgage with an interest only basis of 5% p.a. then annual repayments rise from £6,250 to £7,143.
The reverse can also happen but you must calculate if you can cope or not with such fluctuations. You can, of course, also enter into forward contracts with currency specialists where you buy your Euros up to two years in advance to protect yourself against currency fluctuations.
You must also take tax and legal advice to ensure that the mortgage documentation complies with both British and French law.
What next?
If you decide that you do want to take out a mortgage in France, specialist agencies like Leapfrog Properties can help you by putting you in touch with trustworthy mortgage brokers and banks who will endeavour to offer you the best quote possible. This should be arranged “in principle” before you set off to France in order to avoid any untimely delays once you go ahead with your property acquisition.
Both fixed as well as variable rates of interest are available depending on your financial situation and although interest and capital repayment mortgages over a 10 or 15 year period are the norm there are also interest only mortgages available.
For other articles on buying a property in France, see www.leapfrog-properties.com/articles.
Nick Dowlatshahi is the managing director of Leapfrog Properties, a UK specialist agency in French property. Leapfrog offer an online database of up to 200,000 properties for sale in France plus a personal service from fluent French speakers to help you find, view and buy your property. Leapfrog Properties website is at http://www.leapfrog-properties.com.
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Property Tax Abolished For Overseas Owners Of Properties In France
After much debate, the proposed plan to tax holiday home owners in France has been dismissed. The plan, which would have seen overseas nationals who own properties in France pay tax on their assets, was abolished by the French government following a meeting between its members.
This is great news for property owners and investors looking to buy in France, as it was estimated that the planned tax would have affected the owners of over 350,000 properties.
Had the French Government approved the property tax, it would have been introduced in 2012 and would have been charged to those overseas owners of French holiday homes but opt not to rent it out on a long-term basis.
It was predicted that the property tax would have discouraged some overseas nationals from buying French properties, which may have had a damaging effect on overall demand for properties in France and possibly even home prices.
Initially the proposed tax was set up to encourage holiday home owners who rent out their French properties and do not state their income or pay tax, to register their property and avoid paying a fresh levy.
In figures recently released by the package travel provider, the Co-operative Travel there has been a 31% rise in Brits travelling to France this year, making the country a popular and lucrative location for property investment. What’s more, flights in and out the desirable Cannes have seen a 9.1 per cent increase in commercial air travel and helicopter traffic has risen by 4.1 per cent during April 2011. All this is positive new for the French leaseback market as increased visitors and interest in the French property market in general will help boost the market further.
Due to its close proximity to the UK, climate, rich culture offerings, varied landscapes and world renowned gastronomy, France caters for everyone with a variety of holidays including city breaks, beach holidays and even trips to the Alps.
What’s more, the ever-popular and glamorous French riviera has seen an increase in flights in and out of the area, reporting a 9.1 per cent increase in commercial air travel and 4.1 per cent in helicopter traffic during April 2011. For property investors looking for key fundamentals that will sustain a market beyond the long peak summer season, this is welcomed news.
With luxurious new-builds, French leaseback opportunities and a range of holiday homes available, we can provide you with information on a range of investment opportunities in locations such as the Alps, Paris, Cote d’Azur and the South of France.
Frenchleaseback.org is French Real estate agent helps investors looking for leaseback property. Learn more – Leaseback properties
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Successfully Buying Property in France – Part 2 of 2
Visiting Properties.
1. Keep your itinerary, mobile phone and map with you. Then,
you shouldn’t get lost, you’ll have all the relevant directions and phone numbers with you and if
you get delayed or find your ideal French home, you’ll be able to advise all the agents accordingly.
2. Equip yourself for the task. Don’t wear your best clothes. Do take a torch, tape measure, compass, camera
(consider investing in a small polaroid and sufficient rolls of film for instant results),
pen and notebook, and a pair of wellingtons. Then, you’ll be able to crawl around the haylofts, see into all
those dark corners, take a photo of the unusual feature, measure each room and area, decide where the sun
will rise and set and make sufficient notes to aid your decision later.
3. Try to prepare a list of general questions, pertinent to all the properties you will see, beforehand.
How old is the property? How old is the roof? Is there a septic tank? Are services connected (water, electricity,
etc,)? Is there a good plumber, carpenter, electrician, etc, nearby? How much are the local taxes? How long will
the sale process take (is it a straightforward single owner sale or a multiple owner inheritance sale)?
4. Tell the agent, honestly, what you like and don’t like about each property you see. It will allow him/her
to fine tune your viewing list if you’re on the wrong track.
Making an offer.
Just like people in the UK, some owners will accept an offer and others won’t. Your agent should know
whether the owner will accept and, if so, within what range – so use his knowledge. After all, he wants to find
a suitable property for you as much as you do.
If you can afford the time, it’s generally a good idea to leave your last day free of appointments.
This will allow you time to review the properties you’ve seen and if you’ve made your mind up,
sort out the paperwork without being rushed into mistakes.
When you’ve reached an agreed price, you will be required to sign the first contract – “compromis de vente”.
Without this, your offer remains only an offer and most owners will not stop the marketing of their property.
However, once you do sign it, you are legally bound to purchase the property or forfeit your deposit
(usually 10% of the agreed price). Equally, once signed, the owner is legally bound to sell it to you at the
contracted price. – There is a 7 day ‘cooling off’ period.
A registered agent, advocat or notaire is allowed to draw up the compromis and it is at this point that you
might want to insert any clauses which you feel must be met in order for the sale to continue to completion.
For example, should you require a mortgage, should you NOT want to be subject to the normal
French inheritancy laws, subject to an amount of “to be defined” land, subject to particular items being
included in the sale, etc,. These conditions are called “clauses suspensives”.
Whilst speed is of the essence in the signing of the compromis (as mentioned, without this, the property
could be bought by someone willing to sign the contract more quickly than you), it is possible and acceptable
for all the documentation to be sent to you in your own country so you do not have to sign anything there and
then if you accept the risk of losing the purchase through your delay.
Once you have signed, the notaire will begin his work (relevant enquiries and searches) which normally take
2 to 3 months. You will then be required to return to the notaires office to complete the purchase and pay
the outstanding amount of the purchase price and associated fees or appoint a “power of attorney” to
do the same on your behalf.
After what can be a quite straightforward process, you will be the proud owner of a French home.
Grace Turner is a Director of www.mortgage-calculator-group.com [http://www.mortgage-calculator-group.com] – the website for mortgages in Europe.
For more information about living in France plus thousands of properties for sale throughout France visit www.frenchways.com
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Buying a Mobile Home in France – 1st Step Or Wrong Step?
France is the most popular holiday destination on the planet. 70 million people visit every year, the same number as the entire population. Many visitors come time and time again and for some of them a mobile home in France is an attractive idea.
It’s easy to see why. It’s not as expensive as buying a house in France yet it gives you somewhere quite permanent if you’ve found an area you like.
While mobile homes aren’t huge, modern design makes very efficient use of the space available and if you’re only going to be here for a few weeks a year you don’t need a palace – although to be honest some of them are bordering on palatial with good kitchen areas, lounges, even en-suite bathrooms in some.
A lot of people also look at them as a possible first step on the housing ladder in France.
Well I hate to rain on your parade but if you’re one of the last group, forget it. Keep your money in your pocket and save up because if there’s one thing a mobile home in France isn’t, it’s an investment. Unfortunately there is absolutely no way at all that you will ever make money from its re-sale.
I don’t say that to discourage you, I say it as a warning. If you want to buy a mobile home in France as a holiday destination and you love to return to the same area year after year, go right ahead. It can be a very cost-effective and comfortable way to do it.
You also have the added bonus of it being available for family and friends. Some of them might want to make a contribution to the upkeep, which will further reduce your costs. All in all a pretty good idea. Relatively cheap, convenient holidays. Nothing wrong with that at all.
But as an investment or a first step on the French housing market it’s a non starter. For one thing, much like a new car the value drops like a stone once you’ve bought them. I know of one couple who bought at 15,000 and were offered just 1,000 three short years later.
Admittedly they’d got a very bad deal, with a site that had very dubious selling rules, but that’s another cautionary tale. When this couple wanted to sell their mobile home themselves, not through the site owners, they had to move it off site! To where do you suppose?
Of course they couldn’t do that, so they had to sell via the agents who wanted a big slice of the pie. There are rumours, although unproven, that the potential buyers, who offered a very low amount, would turn out to be relatives of the site owners and so the whole thing was a set-up.
Worse still, not selling is hardly an option because the ground rent they had to pay every year soon became more than the residual value of the mobile home!
Now I don’t want this article just to be a scare story about all the things that can go wrong when you’re buying a mobile home in France. There are, of course, many reputable sites and many honest agents. Choose carefully and read all the small print and you could have a delightful home for many, many pleasant holidays here.
However, if eventually buying a permanent home in France is part of your decision, please think again. Think hard about whether you can actually afford to go the whole hog and buy a ‘real’ property in France straight away. Alternatively perhaps continue to visit different parts of France and get a better view of the French property market whilst keeping the bulk of your savings in a nice high interest account for now.
Jeff Seems is an Englishman living in France. He is author of the very popular French Property Buyer’s Guide which is vital reading for anyone thinking of a buying a home in France.
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A New Record Set for the Price of Property in France
The average price of property in France has set a new record during the fourth quarter of 2010, with an increase of 8.7% on the year, announced Century 21, one of the world’s largest estate agency networks with 117,000 agents in 68 countries.
Compared to the first semester of 2008 where the highest average was 2 549 € per square metre, we’ve seen an average of 2 580 € in the fourth quarter of 2010.
“The decline in prices recorded during the financial crisis which lasted from the second semester of 2008 to the first semester of 2009 has now completely faded”, observed Century 21.
However, this new record masks profound disparities between Paris and its suburbs, where prices have climbed a lot in 2010, and the more moderate rest of the country.
The average price rose by an average of 18.46% over 12 months in Paris, and by 7.8% in the capital’s suburbs, according to Century 21′s figures, based on the 49, 700 transactions the network carried out in 2010.
However certain areas saw their prices fall in the second semester of 2010, such as Alsace, Burgundy and Nord-Picardie.
For the year overall, Haute-Normandie is the only region to have seen its prices fall (-1.9%).
Century 21′s figures concerning Paris confirm the predictions of the Chambre des notaires, who had foreseen a 20% rise over the year in December.
Nonetheless, the records do mask a clear deceleration in the second semester of 2010, a period during which prices rose by less than 1% compared to the first six months of the year.
Considering the frailty of households’ solvency and in spite of the new mortgage loan with reinforced 0% interest, Century 21 is staying prudent.
The network estimates that the possibility of arise in house prices in France of between 2 to 3 % should not be discounted, but notes that the evolution of the market will mainly depend on interest rates.
“This rise in prices is very closely linked to and dependent on interest rates as these days, most other levers permitting access to housing have been called upon already,” concludes Century 21.
Sextant French property is a network of more than 160 estate agents and 50 developers in France offering a selection of 12,000 French property for sale.
They also offer French property investment such as French Leaseback properties
In order to improve their service to their customers they set up a division who can also help customers who bought through a different French estate agent.
Your New Property in France – The French Leaseback Scheme
The French Leaseback Scheme can be a great way to buy new build or newly refurbished property if getting a fixed rate of return on your investment is a high priority and you don’t mind restrictions on the amount of time you can use it.
Essentially what you are doing when you enter this type of contract is buying a freehold property but granting its lease to a holiday company for a period of between 9 and 11 years where the rental return is fixed and guaranteed regardless of whether it is rented out or not. They are hence normally located in popular holiday resorts. It is possible to get a higher return from renting the property during the summer months yourself but this of course brings with it a risk and hassle factor.
Refunded VAT:
One of the great bonuses of this scheme is that the purchaser gets a full refund of the TVA (VAT) of 19.6% if it is a new build property which is either refunded 6-9 months after the purchase or paid and reclaimed by the developer in which case the purchaser never has to pay it.
At the end of the initial lease period, the holiday company usually reserves the right to lease it again until the 20th year after its construction but this is very rarely insisted upon if the client is not in agreement.
If you choose not to lease your apartment out again or sell it then you will have to pay a proportion of the TVA according to how many years are left outstanding from the first 20 years. For example, if the property has been under lease contract for 11 years and there are therefore 9 years remaining, then the amount of TVA that must be paid back to the French government is 9/20ths of the TVA. After 20 years TVA is no longer payable. Remember, if you sell the property during its lease contract then it must be sold with the contract intact to a likeminded individual who is prepared to see the contract through.
Guaranteed Return on Investment:
The guaranteed investment return will typically be around the 5% mark net of all costs tax-free as you benefit from “non-professional lessor of furnished property” status (LMNP). This in effect means that you will receive as much interest as you would in a high yielding savings account as well as the opportunity to gain from capital appreciation of the property.
Personal Use:
Leasebacks often allow the owner the option to occupy the property for a number of weeks a year in return for slightly lower investment yields. If you choose not to use the weeks then you will usually get a higher annual yield.
The Management Company:
An experienced management company will take care of the entire maintenance of the apartment or villa, usually with hotel services available such as reception, house linen, well-kept gardens, swimming pools and 24hr security.
Furnishing:
All furnishing, decoration and electrical appliances are supplied and taken care of by the management company.
Accounting Impacts During the Leaseback’s Term
* Deductibility of the loan interest
* Deductibility of miscellaneous expenses (property taxes)
* Amortisation deductibility – 3.3% per year for 30 years. However, they are deferred and not imputable in regard to the business income.
After the leaseback’s term, the deferred amortisation can be imputed and set against the received net rents.
Notary Fees and Sales Process:
The sales process follows the same routine as for new build properties with the same corresponding notary fees: 3% on new builds and for refurbished leaseback properties you will have to pay the usual 7-8% notary fees on the property before refurbishment – working out at between 4% and 6% of the value of the purchase price.
Better than Timeshare:
Unlike time share schemes, the owner actually sees a return on his/her investment through annual rental yields and also appreciation in the value of the property which can be substantial – so it is not money down the drain. The bonus though with these schemes is that, like time share, the property will be well maintained by the holiday company with no responsibility for changing of linen and cleaning – you simply turn up during your chosen weeks and enjoy it!
Nick Dowlatshahi is the managing director of Leapfrog Properties, a UK specialist agency in French property. Leapfrog offer an online database of up to 200,000 properties for sale in France plus a personal service from fluent French speakers to help you find, view and buy your property. Leapfrog Properties website is at http://www.leapfrog-properties.com.
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Buying To Rent Out Property In France
Purchasing property for sale in France so that you can lease it out when it is not being lived in is becoming an increasingly favoured thing to do. For this to be done successfully the situation of the property is really fundamental. The property needs to be somewhere where people would want to come to. France is a very large country and consequently there are only certain sectors where tourists visit. If your house is not in a well-known area such as Brittany or Provence, it is potentially difficult to attract visitors. But, homes in less well-known areas will be less expensive and there won’t be as much market competition. It is essential to come to a medium, somewhere that is not too expensive and somewhere that is relatively familiar to people. Seeking out property for sale in France needs a lot of research and resources.
Properties in urban areas are cheaper but more difficult to lease out than those in countryside areas as people are usually favour tranquillity and a bit of peace and quiet over hustle and bustle. However properties can be too rural and cut off from services which some potential clients can frown upon. Most visitors will, with any luck, return if you can impress them enough.
To generate the greatest revenue a property that accommodates between 4-5 people is ideal as it appeals to families. The larger properties are popular during the busy seasons but less so in the not so busy ones, therefore it is ideal to have a property that is big, but not too big. Obviously facilities add more to the value of the property (e.g. a swimming pool), however these facilities do incur upkeep throughout the year so be wary of this.
It is essential to have as low maintenance property as possible. Homes that are not rented out for 24 weeks of the year need to be kept dry and secure. It is ideal if you can seek out a friendly neighbour to keep an look out on the property while you are away or you could even hire someone to maintain the garden and check the property out every once in a while.
Upon purchasing a property for sale in France it is necessary to attract clients to the property. Rental prices in peak periods are a lot higher than in off peak weeks. Thus, take this onboard when you personally want to visit the property as if you are staying there in peak periods you could potentially lose a lot of revenue.
The revenue obtained from the off peak periods is likely to not be very much and the potential property for sale in France could be unhabited for weeks on end despite the price of the rent. The Internet is very helpful in researching what your competitors are charging in terms of hire, you need to find out how swell they are doing at renting out their homes at certain prices and look into the availability of the properties. It is most likely that to begin with your home will be leased out to family and friends; this is fine as it can evade the cost of promoting the property and construct awareness via word of mouth. The Internet is also a good starting place for advertising the property; anticipate to pay £110-160 per year to host an advert on a website.
Purchasing property for sale in France with the purpose of renting it out can be very rewarding. A home in the right situation can allow easy access for you and potential visitors making it very sought after. Even if you don’t generate that much income, you should hopefully be able to make enough to cover the upkeep costs of the home and with a bit of luck you should be able to generate some extra revenue, this can be recycled back into improving your home, again attracting more people and making the property more desirable on the property market.
Daniel Brudgins represents [http://www.frenchways.co.uk/], specialist at property for sale in France [http://www.frenchways.co.uk/]. If you wish to buy a property or have a French house for sale we are here to help you.
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Top 5 Tips to Consider When Buying Property in France
A recent phenomenon in the European real estate market is the marked increase in the numbers of foreigners buying property in France. British buyers account for a significant percentage of these foreigners, most probably because of the favourable exchange rate between the Euro and the British Pound; and the lower prices of property in France compared to Britain.
Purchasing property in a foreign country is always fraught with difficulties, mainly because of the different language and the plethora of property laws pertaining to the foreign locale.
It is therefore imperative that the following top 5 tips to consider when buying property in France are taken into account. Being armed with this information will make the entire buying process so much easier and enjoyable.
Tip number 1 is that once you have decided on a budget for the property, the next thing to do is to decide exactly which area you like best. When this aspect has been decided, you need to travel to the area in person to check out what properties are available in your price range; and to see if there is a property that you would really like to purchase.
Tip number 2 is that if there are properties of interest, you need to check all the estate agents in the area to see which one is offering the cheapest price, as all agencies have different prices advertised. The advertised price of a property in France includes the estate agent’s fee, which generally ranges from 6%-10%, and is paid by the buyer. The only cost not included is that of the notary, whose fee is also around 6%-10% (and includes land registry costs and government taxes). The notary is a government official who is impartial – and it is accepted practice for him to represent both sides in a property deal.
Tip number 3 is that even once you have selected an agency, you need to ensure that there is an English speaking agent – or at least one who has a very good knowledge of English – unless, of course, you are fluent in French. Misunderstandings through lack of understanding between the parties account for huge numbers of deals falling through and, in worst case scenarios, getting involved in legal proceedings and/or losing all ones investment.
Tip number 4 is to know that you will have to sign three documents – the first is for the estate agent, stating that you will not approach the seller behind the agent’s back, or buy the same property from another agent. The second is an offer to purchase, which is also signed by the vendor in acceptance of your offer. The third is a legal statement of intent to purchase, at which time a 10% has to be paid. There is then a 7-day cooling off period when either party can rescind its offer. Should the deal fall through, your 10% deposit will be returned to you.
The above information should make buying property in France an easy and pleasurable experience.
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Successfully Buying Property in France – Part 1 of 2
French property buying guide for buyers
Researching Property.
Spend some time thinking about:-
What location are you looking for?
Weekendable or half-terms and main holidays?
Within reach of a ferryport or near to an airport?
A mild, warm or hot summer climate?
A mild winter climate or snow and skiing?
Near the coast, rolling countryside or mountain views?
Town, village or rural?
What type of property are you looking for?
A holiday home, a permanent home, income producing or
“get-away-from-it-all”?
Lots of land and lots of upkeep or a small garden and low maintenance?
A restoration project (and the end of carefree holidays)
or renovated and more expensive – bear in mind that property prices in France are cheaper because land is
cheaper, building and restoring costs can be as expensive as in the UK.
Personal use or space for gites
- they say the average gite can make £4,000 per year but a lot depends on number of bedrooms,
off season use (central heating) and marketing, etc, and there are running costs to consider.
Choosing your Property.
There are two methods of choosing your property.You either choose a SPECIFIC property from
our website database (which is automatically updated as and when we are informed of changes) or you choose
the TYPE of property that interests you.If you choose a specific property, you MUST be prepared to drop
everything and get to France as quickly as you can. Whilst we employ the speed of the Internet to keep you
informed and to update our systems, ensuring we are always ahead of printed brochures and magazine adverts
(which have a minimum 4 week leadtime), it should be appreciated that because in France the buyer pays the agency fees
rather than the seller (as in the UK), some owners will put their properties on the
books of more than one French Estate Agent and whilst every effort is made to ensure availability with
our offices, it could be sold by another agent the day after an appointment is made. This is true for everybody
working with French properties.
If you choose the TYPE of property that interests you then this is not a problem.
The Viewing Appointment.
You can have an organised itinerary, reasonable journeys each day and good “value for money”
accommodation waiting for you each night or you can skid up and down the country exhausting yourself – and
France is a big country.Trying to squeeze in 3 or 4 appointments a day, an hour here, a late arrival there
might seem like the best way to cover ground – but mostly, that’s exactly what you’ll achieve – covering ground
and you won’t endear yourself to the French agencies.
Once we understand the property TYPE you’re seeking and the amount of viewing time you want us to
fill, we brief the agents in your chosen area(s). They confirm availability of a number of suitable
properties and we book the amount of time necessary for you to view the selection. This can range from
half a day to 2 full days, depending on the number of properties to see. We then arrange the whole itinerary
into the most efficient travel and accommodation circuit, ask you to confirm that
you are free to accept the appointments and, finally, firmly confirm your appointments with the agents
concerned.
If you are not free to accept the appointments, if you’re waiting for other agency confirmations,
if you have “rest” days in mind, please tell us beforehand. It is far more
preferable to accommodate your needs from the start than begin cancelling confirmed arrangements later.
Having numerous agencies tripping over each other, producing double bookings and cancellations, might
seem like the best way of organising your trip but you really are reducing your chances of success and
when you need to return to France for a second time, you may find you’re not treated as seriously as
you’d like.
We at http://www.frenchways.com maintain over 3000
properties on our website and our offices have over 35,000 more on their books thus ensuring there is always
a selection of the type you like, available for you to view.
Grace Turner is a Director of www.mortgage-calculator-group.com [http://www.mortgage-calculator-group.com] – the website for mortgages in Europe.
For more information about living in France plus thousands of properties for sale throughout France visit www.frenchways.com
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