7 good reasons to borrow money even when you have the possibility to pay cash :

  • Euro rates are most of the time much lower than dollar or sterling zone interest rates
  • Keep your equity on your main residence in your home country
  • Take advantage of the protective French consumer regulation
  • Match the mortgage euro installments with euro rental income
  • Minimize risk matching euro assets vs. euro liabilities
  • Reduce or offset exposure related to the wealth French tax (ISF)
  • Keep your cash for other purposes, investments for instance

Why investing in France ?

Investing in France is definitely the right choice. Beyond your personal and emotional motives to invest in a French property, France presents several attractiveness factors :

  • A reassuring regulation and protection of the buyers / borrowers
  • A stable market compared to most of the European housing markets
  • Attractive prices and low rates
  • High standards of construction
  • Preserved surroundings and environment

Do you plan to move and settle in France ? Do you intend to buy a holiday home ? Do you wish to buy-to-let ? Do you need to refinance your running loan or draw equity from you existing property ?

Credit Foncier can help you financing most of your projects :

Property acquisition :

Existing or new, including “off plan”, main home or second residence.

Buy-to-let investments :

Including “SCPI” and leaseback operations.

Post purchase financing :

Up to 18 months after the date of the purchase.

Foreign property purchase with French collateral

Buy a property abroad using your French property as a guarantee for your mortgage.

Remortgaging

A need to refinance your running mortgage on your existing French property ?

Bridging

Don't wait to sell your existing French property in order to buy a new one. Just plan a bridge loan to take your time to find out the right new one.

Renovation

Works, refurbishment, property extension or just property enhancement.

Equity release

Your capital is locked in your existing French property ? Just cash out and fulfill your projects !

It's important the proposed solution suits best your needs. Credit Foncier can provide you with a wide range of mortgage products and services.

Fixed Rate mortgage

Download G11024.pdf

Pdf file 172 Ko Download the PDF file G11024.pdf (172 Ko)

Variable Rate mortgage

Download G11022.pdf

Pdf file 172 Ko Download the PDF file G11022.pdf (172 Ko)

Fixed + variable rate mortgage

Download G11022.pdf

Pdf file 172 Ko Download the PDF file G11022.pdf (172 Ko)

The players who will be dealing with you

Buying property in France involves dealing with various commercial and legal protagonists

The notaire

In France, all property transactions go though a notaire, who, as a public official and legal professional, certifies the legal status of a property sale. His role is neutral and his fees are fixed by government decree. A notaire can also play a more commercial role, acting as intermediary between vendor and buyer.

The estate agent

As an intermediary between buyer and seller, an estate agent offers properties for sale, organises visits to the property and contributes to the negotiations. He may draw up the preliminary sales agreement. Estate agents’ fees are not regulated, but the rate of commission must be displayed. Usually between 5% and 8 % of the selling price, the commission is payable when the sale is concluded.

Vendor and buyer

Vendors and buyers are often just private individuals but either or both may also be a legal entity, such as a company or an SCI (non-trading property-investment company).

The property developer

A property developer builds houses and apartment buildings for sale…and usually sells them before building work has started. “Off-plan” purchasing – vente en l’état de future achèvement (VEFA) – is a highly regulated process and buyers enjoy wide-ranging guarantees.

The architect

Architects advise in cases of construction or restoration of public and private buildings. You may need an architect’s advice regarding quality of construction or the need to have improvements or renovation carried out.

Preliminary sales agreement

When French property changes hands, the agreement between seller and buyer must be formalised in a written contract known as a promesse unilatérale de vente or compromis de vente.

Both are preliminary agreements that come before the final sale contract, to give the buyer time to obtain financing and the notaire time to collect the documents required for proceeding with the sale, when the acte authentique de vente (deed of conveyance) will be signed.

Both agreements can be signed privately (acte sous seing privé) or in the presence of a notaire. They are very important for both parties, considering the scale of their respective commitments, in that they give a clear definition of the terms and conditions of the future transaction.

The promesse unilatérale de vente (unilateral agreement to sell) only commits the seller to selling the property at a certain price during a certain period of time. The document must be registered with the Tax Office Registrar within 10 days, failing which the document is declared null and void. The registration fee is € 76.22, plus stamp duty. The agreement to sell includes a specific clause specifying that the buyer must inform the seller of his decision to buy by “taking up the option” before a predetermined date.

The compromis de vente (provisional sales agreement) commits both parties and is equivalent to a final sales commitment. It is not necessary to register this contract. Unless you are absolutely sure that you want to buy a piece of real estate, do not sign a compromis de vente. It will commit you to buying the property almost to the same degree as a final sales contract.

Both types of document must include the following clauses:

Personal details

Personal details of the seller(s) and buyer(s). The property: date of the previous deed of conveyance or donation, the name of the previous owner(s), the name and address of the office of the notaire who authenticated the deeds, a precise description of the property and its future function and the surface area of the property reserved for private use when the property forms part of a condominium.

The selling price

This clause must specify the price of the property and conditions of payment and give information about any property loan or loans taken out with a view to its acquisition. If the sale is going through an agent, the price given should exclude commissions, to avoid paying transfer duty these commissions. These commissions should, however, be mentioned in the provisional sales agreement, specifying that they are to be borne by the buyer. Signing a provisional sales agreement usually requires the buyer to pay a deposit of 10% of the property’s value. The selling-price clause should include a reference to the amount of deposit paid.

N.B. The buyer must not pay anything prior to signing the preliminary sales agreement. When signing the preliminary contract, the buyer must not give the deposit directly to the seller but to a professional authorised to receive such funds (the estate agent, if he is empowered to do so, or the notaire).

Avoidance clauses

These define the conditions under which the buyer is released from his obligations as defined in the preliminary contract. The most common is the clause making the final agreement subject to the prospective buyer’s ability to obtain a loan. If the potential buyer fails to get the necessary loan, he will be released from all commitment and is entitled to recover the deposit he paid on signing the preliminary sales contact. These avoidance clauses may also concern the sale of the buyer’s previous property, the granting of planning permission and/or permission from the condominium’s owner association if the buyer wants to enlarge or modify his future property, the obtaining of a certificate of compliance for work previously carried out by the seller, the absence of encumbrances or occupiers, and damage to or destruction of the property concerned.

 
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