Advice on buying French Property

by John Everitt

Depending on the property and even the area of France, the laws on buying and selling Property in France can vary somewhat. Be careful with the capital gains tax, as this is chargeable on all second home sales owned for less than two years at a rate of 33% with a sliding reduction on profit percentages over a 20 years period. France has no restrictions on foreign property ownership.

Property Prices in France Guide Properties Range Varies, for example: From £10,000 for rural properties in need of renovation From £30,000 for apartments and studios From £50,000 for suburban properties From £60,000 for Ski apartments and chalets over £100,000 From £150,000 for South of France properties Locations in France France is divided into many regions and has a variable lifestyle.

Cost of Living in France
Although the general standards of living are quite high in France in areas heavily populated like Paris, Cote d'Azur, Riviera etc. Areas within rural communities tend to be a little cheaper to live in and as such are becoming quite popular with overseas buyers.

Buying property in France
Freehold residential property. Once an agreement on price is reached by both property buyer and property seller, a solicitor or notary will draw up a legally binding contract which both parties would sign. Normally a 10% deposit would be paid at this point (which would be held in a secure account until the completion). The property would be withdrawn from the market and the legal system would commence its checks etc. At this stage if the purchaser were to back out of the contract you would lose your deposit. Normally the final contract would be signed by both parties at the Notary's office and at this stage the deeds would pass to the buyer and the land registry updated. The balance of the property purchase price would be paid to the Notary who will then pay the vendor. You will need to provide the Notary with a copy of your birth certificate translated into French and, if applicable, a copy of a Marriage Certificate, also translated.

Lawyer
We recommend that you enlist the services of a French Lawyer or Solicitor in the purchase of your French Property, preferably one who speaks English. This will help to protect your interests in the property purchasing procedure. This will be in addition to needing a Notary who is mandatory for property purchases.

Fees
Expect to pay around 10-15% over the selling price; The Notary fee is around 3% Transfer tax is 7.5% (less than 1% for new properties) Registration fees around another 6%. The vendor should pay the Real Estate Agents fees.

Property Tax in France
Property taxes are levied on property plus residential tax for living as an owner - occupier or as a tenant (renting or not). Both are calculated on the average property rental values.

Mortgages
Normal lending criteria will allow you to borrow up to 80% from French banks or international mortgage brokers and should be declared at the time of the preliminary agreement. The normal repayment term can vary between 15 - 25 years depending on the lender. These guidelines are meant for guidance only and describe a straightforward purchase scenarios. However this information is not meant to replace proper legal advice, which we always insist you take.

About the Author
John Everitt is a consultant to Globespan European property portal. Please visit our estate agents directory and this France buyer's guide