Purchasing property in France is straightforward and relatively simple. However, there are differences from procedures practised in UK or Ireland. The following is a note of points you should familiarise yourself with before seeking a home in France.
Properties are put on the market through the offices of several estate agents. Our advice is to deal with only those showing the FNAIM logo. This is your guarantee that any deposits you put down are held in accordance with Government legislation and cannot, by law, be interfered with or misappropriated.
A property is deemed to be sold to the first person signing the papers of purchase (a sales agreement - “compromis de vente” in French).
It is important to note this because many house-hunters are unaware that a property they have viewed is also being seen by others using different estate agencies. This can lead to complacency. If you are totally satisfied that you have found the property you wish to purchase then move quickly to seal the transaction because delay may result in it being sold to another interested party.
Under French regulations, a copy of the sales agreement signed by the vendor and purchaser must be sent to the would-be purchaser at their home address by registered post. You are allowed seven days for a change of decision - should you wish to withdraw - without penalty. The deposit will be returned within 21 working days
Bank {top}
It is mandatory to open a bank account in France when you have purchased property. Mortgages can be arranged in France from 2.65% or you may, of course, arrange facilities in the UK or Ireland.
Opening a bank account is straightforward. You will require your passport and will be asked to provide personal details (age, current income or pension and a utility bill etc). Please note any borrowings over 200,000€ will require a blood test, which takes 20 minutes and costs about 83€. You can open an account with a deposit of €10.
Insurance {top}
Under French Law you are obliged to insure your property, regardless of whether there is a mortgage or not.
Insurance is considerably cheaper than in the UK and Ireland. For example, a three bedroom detached villa costing approximately €150,000 would equate to an annual premium of € 180. It is advisable to take out house contents insurance in addition.
The choice of Property {top}
The choice of the type of property you seek is entirely your decision. We will, however, advise on areas that match your criteria. First glance (if you are new to an area) can often be misleading and lead to disappointment as you settle in.
There is little point, for example, in electing to live in a rural agricultural area distanced from a town if you have little or no knowledge of the French language. The price of property may be lower but the drawbacks will be much greater. Town living will prove a much better decision, at least until you have a sound grasp of the language.
An apartment close to a beach may look attractive in summer but mostly these areas become ghost towns after October and many an incomer has found to their dismay that they may be the only occupants in an apartment block (the rest being boarded up for the winter). Cafes and shops in the beach areas also close during the Winter and Spring months.
Rental Income {top}
If you intend purchasing property with a view to obtaining rental income there are several options you should consider.
You administer the property yourself (in other words you find the tenants). We would not recommend such a policy because it is time consuming and requires administrative supervision.
“Lease-back”
- If you intend purchasing a new property with the aim of leasing it back to the property developer then consider the following :
The developer will be responsible for finding tenants and administering the property on your behalf. Normally this will be covered in a contract that will run up to nine years. Generally speaking, this means you may have no access to your property during that period and if access is permitted then the rental income will be less. Returns on your investment currently run at about 4.25% per annum.
“Rental-back” arrangements
Generally unfurnished property attracts a minimum rental-back period of three years. The costs related to this are normally 7.5% by the agent plus a further 1.95% which is optional and is a form of guarantee to the owner by the Insurance Company on behalf of the tenant. This covers any damage caused to the property or non-payment of rent. We strongly recommend protecting yourself with that extra policy. Anticipate about 7% annual return.
Another method relates to properties which, after purchase, are then taken under our management to be rented out on your behalf. These are located in “cure centre areas” (Spa centres). These properties have excellent rental incomes up to nine months of the year. This allows owners to use their property during the remaining three months or rent out accordingly.
In spa centres rental returns can vary between 7% and 9 % per annum, almost twice that of lease-backs.
IN BOTH LEASE-BACK AND RENTAL-BACK THERE ARE NO ABSOLUTE GUARANTEES.
Bridging Finance {top}
Through our banking network, we can arrange bridging finance for British and Irish citizens. They are cheap and efficient and help you get the property you want at the appropriate time and at the right price. How it works:
Example: You find a property at a purchase price of 220,000€. However you need to sell your house before proceeding. This often means you will lose the house you wish to purchase in France. Through the bank, we arrange 100% finance for the purchase of your French home. This facility is provided for up to two years during which you pay nothing. Having sold your property in the UK, say 7 months later you pay the French bank the bridging finance. The cost of this finance at say 3% works out at 3,850€. This figure can then be added to your mortgage or settled by you.
We believe, from information supplied to us by banks in this region of France, that we are the only company offering this unique bridging finance facility
French mortgage check list {top}
The following is an indication of the information you will need to supply for a French mortgage. This is a general list and help is available by phoning
0208 133 9522
Current mortgage rates start from 2.4%
- P60
- 3 last salary slips
- 3 months banks statements
- Proof of personal funds
- Utility Bill (Gas, Electricity etc)
- Passport
- Marriage certificate
- Divorce certificate
- Estate agents valuation of your property
in the UK or Ireland
Having once received the necessary paper work, it normally takes about 3 weeks to get a final acceptance.
If you are self employed, please tell us as we can talk you through the necessary steps. Part of our service includes translating Profit & Loss accounts for French banks.
IF YOU HAVE ANY QUESTIONS PLEASE DO NOT HESITATE TO CONTACT US. THANKS.
Our Promise to You {top}
Contrat de Confiance:
Thinking of buying in France? Wanting to buy a second home or an investment property?
With busy schedules and life styles wouldn’t be nice to have everything done for you at no extra cost. Well read on….
If you are planning a trip then let us take charge for you. No matter which agent or what area of Languedoc Roussillon we will arrange ALL your viewings. We will drive you, so you can relax and simply enjoy the scenery and take note of the properties you visit. So forget using your car!
Because of our very extensive network of agents not only will you see the best properties within your pre determined budget, but we will negotiate the best price for you. Even if you have seen a property through another agent, don’t worry, we can still negotiate that price down
You’ve found the property you want. It’s in need some renovation but not sure about French builders, well don’t worry, for years we have been teaming up with reputable builders in the region with great results. And better still at pre arranged fixed prices!
And during your visit we will cover all aspects of buying a property in France, including hereditary issues, French Law in general, residency and financial matters including French mortgages, tax and social security.
And guess what, if you don’t have a car we will even pick you up from the airport and take you to your hotel.
So what’s the catch? There isn’t one. All you have to do is register with us and we will do the rest AND you will also receive the following:
#Three nights free hotel accommodation when you buy through our network
(An advance charge of 165€ will be made which covers 3 nights hotel accommodation. This is fully refundable should you proceed to purchase a property. Additional nights will charged at the hotel quoted rates. The selected hotels are normally 3 star rated and consists of a double or twin bedded room. This excludes breakfast.)
# Free Wills and Hereditary contracts will be prepared by the Notaire before you complete your purchase.
# Six months free home insurance when you purchase through our network.
So just register with us and we will start working for YOU. That's our Promise to YOU. Remember you can de-register at anytime.
By registering you authorise French Property Register to exclusively act on your behalf, to arrange all necessary viewings at no cost to yourselves. You agree to work with French Property Register until the right property is found. You have the right to cancel this agreement at anytime with the understanding that the above offers would be forfeited. By registering you accept our terms and conditions.
