Financing your Purchase of a Property in France
If buying a property in France is something that you really want to do, you may have definite ideas on what style of property you would like. You need to decide on whether you want a recent or brand new property or an old character property, and when making this decision you need to carefully consider the pros and cons of buying a new or an old property. An old property may require work, and you will need to budget for this.
Be aware of the style of character properties available in the area of your choice – for instance it is no good deciding that it must be a stone property in an area that doesn’t have stone properties, or a colombages longere where there are none.
French Restoration Properties
Although it may sound very appealing to buy a property to restore, do keep in mind your capabilities in this respect. If you have never tackled anything more challenging than changing a light bulb then don’t be tempted to take on plumbing, roofing and electrical works. You can be sure it will be no easier in a ‘foreign’ country. Do bear in mind that these works may cost more than you expect in France so try to get estimates or a rough idea of costs before you proceed to purchase.
Buying a New Property in France Off-plan
You should also consider whether buying a property off-plan would suit you.
The main point to consider is the timescale involved as many of these properties will not be ready to use for perhaps 18 months. This might suit you well or be really inconvenient. It is possible occasionally to find new properties that are almost completed so it is worth enquiring and stating your timescale. One advantage of new homes in France
How much can you afford?
The final decision to make is what price you can afford. Are you going to buy with cash, take a loan on your property in the UK or a mortgage on the French property?
Considering a Mortgage on a French Property Purchase
It is also a good idea if you haven’t already done so, to contact a mortgage broker. They will be able to tell you what amount you can sensibly borrow and how much the repayments will be etc so that when you are in France you don’t waste time looking at properties that may be beyond your budget. It will also speed up the mortgage process if you have provided him with the information he is going to require to make your application.
You should speak to a mortgage broker specializing in mortgages for French properties to discuss your position, which will help you make the best decision. How much you can borrow depends on your income and outgoings and they will be able to give you a quotation to show how much your payments would be over different periods of time.
It is essential that you do this prior to spending time looking and dreaming only to find that you can’t afford a property you would like to buy or possibly that you could afford to spend more for very little extra monthly cost so that you could find what you want more easily. Mortgage brokers in the UK are governed by the Financial Services act and as such you are protected from any mis-selling and misunderstanding that could occur when dealing direct with the French banks direct.
Selling your House in the UK to Finance Your French Property Purchase
If you need to sell a property in the UK in order to be able to purchase in
France I would advise that you get it valued in order to ascertain what budget you will have available.
You will not be able to purchase a property in France subject to the sale of your property in the UK so before you spend a great deal of money making trips to France to view properties and perhaps find something that you fall in love with, I would advise placing the property on the market and getting as far as accepting an offer first.
The law in the UK allows that you can pull out at any time so that if you then visit France and find that you don’t like what you see and change your mind, you can always pull out of your sale before exchange of contracts.
Legal Advice: Buying a Home in France
You might also like to think about appointing a solicitor to discuss the way to purchase, especially if you have unusual family set-ups that are not the norm. There are always solutions but it is best to arrange things correctly before you start. I would always recommend that if you are going to take separate legal advice that you get it from the best qualified people you can – there are several solicitors who are qualified in France and the UK and are UK based that would be ideal as they can look at the subject from the points of view of both countries.
Foreign Currency
At present it is also an extremely good idea to contact a currency company to register and perhaps discuss what they think is likely to happen regarding the exchange rate. You might consider changing all or part of your money now or buying forward.
This can save you a considerable amount of money if there is a lot of movement and will at least mean that the price you agree in Euros will be the price you pay – rather than buying Euros at a later date to find the rate has changed and your sterling does not buy as many Euros as it had done when you agreed the price.
A good currency company can also assist if you have lodged some money
with them by immediately sending through your deposit to secure a property.
Ideally you should have considered all these factors and put necessary arrangements in place before you start house hunting in France in earnest.
Financing French Property | Mortgages & Cash Purchases |
