Mortgages

Guide to buying abroad in France

Overseas mortgages Hardly a person in the UK does not know someone who has not or does not want a property abroad and France has become a honey pot for investors looking to buy overseas.

Many investors have bought a bargain older style property that hardly seems to cost much and is fun to renovate. Travel times are great especialy if you are travelling to France through the Tunnel and don't mind a long and winding drive there after. There have been some hostility from French citizens that are not keen on Brits buying up the older properties although that has calmed down somewhat.

You should be aware that when looking for a French bargain that at least another 12% of the asking price should be added to your budget to cover costs that include taxes and fees. There is also the Notairs fees, who incidently is not a lawyer but a public official. Then there is the stamp duty that will also be charged which is around 8%, agents fees could be around 7 to 8%.

Your offer is accepted with a seven day cooling off period built in and a 'compromis' sales agreement will have been signed and handed over your deposit of 10% - could be less if you are buying a new property. Homeowners in France have two local taxes to pay, land tax and council tax and the annual figure for both can be as much as several hundred euros.

 
Overseas mortgages

French Property Buy to Lets

If you are intending to rent out your French property you will need to look at any legal reccommendations as you could be liable to pay French tax. If you sell within two years of purchase you should also look at the implications of capital gains tax which is 33.3 percent.

You should always take advice before signing up for your new home, French inheritance law is a minefield, so it is advisable to make sure you take expert legal and financial advice before signing anything.

For more information click here where we detail lending criteria and buying in France.

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