Guide to French Property     

Introduction - France, the third largest country in Europe is double the size of the UK. It is bordered by Belgium, Luxembourg, Switzerland, Germany, UK and Spain, and by 3 seas, the Mediterranean, Atlantic and English Channel. It has over 1800 miles of coastline and 22 regions. France is one of the most popular holiday destinations with some 75 million foreign tourists annually. A founding member of United Nations, a member of the Security Council and G8, it has developed a strong economy and sense of worth.

The French Property Market - in such a large country it is not surprising that there is a wide variety of available property from town house and apartments, village cottages, farmhouses, chateaux and maisons bourgeoises. The idea of buying and living in a chateau in France sounds wonderful. There is certainly a choice with approximately 30,000 chateaux available and they can be surprisingly cheap to buy, with prices similar to a relatively modest house in the UK . Bear in mind however, that often substantial renovation will be required and that the upkeep will be substantial for large properties. As a consequence, unless you are a purchaser with the intention of converting the chateau into a hotel business or similar, tread with caution! A French Maison bourgeoise is an old town house, often occupied by skilled artisans or local dignatories. They normally have a wide front facing the street and typically use stone in their construction, reflecting both the solidity and wealth of the owner. Again, like chateaux, there will be no central heating or facilities, and the local authorities may well require you to retain the character of the building when renovating, causing extra cost and upkeep. New build accommodation in France is approximately 50% more expensive per square metre than older accommodation. New houses have to be built to strict building codes and regulations and come with an insurance policy (Assurance Decanale). If you want to build your own house, land in rural France is often inexpensive, but make sure that you use local English speaking professional advisers who know the planning laws and are on good relations with the mayors office (mairie) There is one important difference between the description of a house in France and the UK. In the UK houses are described by their internal floor space. However in France only the habitable areas i.e. the dining and living rooms etc are included, and the bathrooms, stairways and communal areas are excluded. So houses in France can actually be up to 50% larger than the stated size. Roll down window shutters are often fitted to houses, as in other European countries both for security and to keep the house cool in the summer. Some insurance companies will not insure a house unless it has some form of shutter. The trend in France is to rent rather than buy a French property so the buy to let and long term rental property market is strong and offers good continuous prospects for the property investor, both for income and capital growth. Best properties are in cities and large towns rather than rural areas.

How to Buy a Property for Sale in France - Always use a English speaking French lawyer (avocat). Once your offer for the property has been accepted, a preliminary contract (the compromis de vente) is drafted and signed in front of a notaire. The contract will include an agreed completion date. It is important to include all extra verbal agreements you may have come to, or particular circumstances on which the property purchase depends. For example, if you can only complete the property purchase if you receive a particular job offer, then you can make this part of the contract as a condition suspensive. You will then need to pay a deposit, not to the buyer or the estate agent, but to the notaire and also pay the stamp duty and registration fees. There is then an official 7 day official cooling-off period. You can cancel the contract during this time, but it is essential that you provide proof of this i.e. sending the cancellation by registered mail. If completion does not take place, the buyer then loses his deposit, but if the seller cancels, the buyer is entitled to receive double the deposit back. If you cancel because one of the conditions suspensive cannot be fulfilled (such as the job offer mentioned above) then the deposit is not lost, as the cancellation is justifiable. As in the UK it is important to engage a building surveyor to do a survey before signing the contract. Equally to check any planning applications or restrictions. In towns you do this at the prefecture, and in villages at the mayors office mairie The final Deed of Sale (the Acte Authentique de Vente) is signed by all parties in front of a notaire and the property registered at the public land registry, and the document is called the cadastre. Be aware though that the cadastre does not show precise boundary markings for your property and in the case of disputes, a bornage process takes place to agree the details and these are registered with the land registry again. The buying process is slightly different if you are buying off-plan. A deposit of up to 5% is payable but the preliminary contract is more to commit the buyer than the developer, and the main contract is called the VEFA contract. It is absolutely essential in the case of new build property to use a reputable agent to advise you and check out the developers bank guarantees and previous building work. When arranging a mortgage for your property, use a specialist to advise you whether you should take out a UK sterling mortgage or a Euro mortgage. Subsidised mortgages for residents only are available in France, as a way for the French Government to encourage home ownership, but they are only available for first houses. These are complementary to the main mortgage, so most French people will have more than one mortgage on their property. Interest free loans are available for those buying property needing substantial renovation, but the property cannot then be rented out in any way. There is also an income limit for applicants, which will vary according to region and size of property. There is a similar scheme for Paris property as a main residence, and for key workers. Discounted employer loans are also available for residents or potential residents and the amount employers can use each year is fixed to the housing mutual fund to which the employer is linked. Inheritance tax laws in France can be a minefield, although actions can be taken, but it is essential to discuss this aspect with a suitably qualified lawyer. Much will depend on whether you are resident or non-resident in France at the time of death.

French Culture - France originated from the Franks, a Germanic Tribe who occupied much of Northern Europe after the fall of the Roman Empire. The French Revolution (1789-99) violently transformed France from a monarchy with a rigid social hierarchy into a modern nation in which the social structure was loosened and power passed increasingly to the middle classes. Today France is predominantly Roman Catholic, around 83% with the remainder Muslim, Jewish and others. France is made up of are many regional dialects, including Basque in the south west, and Breton by some in Brittany. English is also widely spoken due to the high level of tourists in the country. France has one of the strictest tax regimes in the world, with corporation tax set at 33% and personal income tax varying from 10% to 48% depending on your level of income. French health care is highly regarded in the EU with good quality doctor and hospital care and virtually no waiting lists. However this comes at a high cost to the French taxpayer. Health care is provided free or highly subsidised by the government. For retirees to France, rules have recently changed (November 2007). If you have been resident in France for five years, or have reached formal retirement age, then you are entitled to join the CMU for free medical care, like all EU countries. However, for new retirees younger than the official retirement age who are not taking up employment or starting a business, they will no longer be able to obtain a “carte vitale” or “green card” to entitle free medical care. Instead they may use the EU form 106 for 2.5 years of medical care, following which they must take out private medical insurance. France has good education system with 11 years of compulsory education from 6 to 16 in co-educational schools and many students go on to higher education. The “Lycees” (upper secondary schools) prepare students for the baccalaureat school-leaving exams. A small number of International schools do exist but are based mainly around the Paris area.

How to Get There - airline travel from the UK to France only takes about an hour and most of the airports like Paris, Bordeaux, Lyon, Nice, Montpelier and Toulouse are supported by scheduled and budget airlines. Other ways to get to France from the UK are by the Eurostar train, travelling London to Paris “door to door” in 2.5 hours, or driving through the Eurotunnel from Folkestone to Calais from 35 minutes. Cross Channel ferries are also popular with a 90 minute journey time to Calais. With such fast journeys, there is a growing number of Brits who now live in France and commute to the UK to work. Getting around France is easy – it has one of the most highly developed rail systems in the EU and a very efficient underground system in Paris.

Tourism and Entertainment – The country has a spectacular variety of scenery from river valleys in the Loire, Rhone and Dordogne to the mountain ranges of the Alps and Pyrenees. France is well known for its chic Fashion Shows in Paris and for its gourmet food, coffee and croissants, wines and champagne. French president Charles de Gaulle once remarked, How could one describe a country which has 365 kinds of cheese?' Each of the 22 regions has its own type of food and is intensively proud of its culture and traditions. France holds many carnivals and festivals – world renowned ones are Cannes Film Festival in the south for film fans, the Paris Gay Pride Parade, and Bastille Day (independence day) and the 10 day carnival in Nice. The annual bike race, the Tour de France, is legendary and not always immune from controversy! Areas to visit are the ski slopes of the Alps, the flatter Loire valley with its wine chateaux, the rolling hills of Provence fragrant with lavender and wild herbs, the sleepy villages and wonderful castles in the centre of the country. Paris is acknowledged to be one of the most beautiful cities in the world with its tall Eiffel Tower, the fashionable Champs Elysee, saucy Montmartre, the angular Pompidou building and the winding River Seine. Famous sights in Paris to visit are the Sacre Coeur church, Notre Dame cathedral, and the famous Mona Lisa painting in the Louvre. Further south, Bordeaux is famous for its vineyards and wines and its 18th century architecture and the Riviera is synonymous with wealth, a jet-set lifestyle and yachting marinas.