New property in France & the buying procedure

(… continued )

Financing your purchase

a. French Mortgages: French banks will lend up to 85% of the property purchase price on a second home. Rates offered are variable or fixed, the term is usually between 7 years and 25 years and it will generally be on a repayment basis. Mortgage offers should be in place within one month of signing the reservation contract, as stated in the contract terms and conditions. We highly recommend that you investigate the possibility of obtaining a mortgage even before you make your site visits.

b. UK Mortgages: UK mortgages are classed as a cash purchase for the purposes of the reservation contract. We strongly recommend, however, that they are in place or agreed before the contract is signed.

Reservation contracts cannot be signed subject to the sale of another property.

French notaire

French Notaires are independent and do not act solely for the buyer nor the vendor. They are appointed to handle the conveyancing administration. The Notaire is the only person authorised to register the title of ownership for your property in France. As a government representative, his or her role is to collect the taxes involved in buying a property and ensure that all legal documents are properly registered. Although it is not compulsory for purchasers to appoint an independent Notary, some buyers choose to instruct a UK based Notary Public at their own cost for independent advice and signing of the Power of Attorney.

Delivery dates

French Construction companies endeavour to give the most accurate delivery schedule possible. Over the years our experience has shown that in general, schedules are met. However, circumstances outside their control may lead to alteration of the schedule. Dates of delivery are not confirmed until written notification is given by the developers approximately 4-6 weeks before construction is completed.

Property insurance

The property owner is responsible for insuring the French property from the date of the handing over of the keys, to include building, contents and public liability (responsabilité civile). For apartments some buildings insurance may be provided by the management company.

Running costs

a. Rates and Taxes: Residential Tax (Taxe d’Habitation): Invoiced annually. The owner of the property is liable for this payment. Our particulars give an estimation of amount as a guideline.

Property Tax (Impot Foncier): Invoiced annually. The owner of the property is liable for this payment. Our particulars give an estimation of amount as a guideline.

b. Service Charges: Called “charges de co–propriété”, they cover the maintenance of the on-site amenities and communal gardens. They are invoiced quarterly by the management company (syndic de co-propriété) and calculated on the habitable area of the property. Our particulars give an estimation of these charges as a guideline only and are not contractual.

c. Utility Bills: Water and electricity are metered. The property owner is responsible for the bills which are payable according to consumption. For apartments the water bill may be included in the service charges.

Back to page 1

For FAQs about French new property go to our Buying off plan guidelines page