The FRENCH CONNECTION
WHERE SHOULD I BUY?
This depends on budget, your interests and what you want from your holiday experience. Do you crave mountains for adventure and long walks, a busy urban setting, or a seaside retreat? Also, consider the climate. If you seek plenty of sunshine, remember that popular destinations such as Normandy and Brittany have a similar climate to the UK, while some areas of the balmy south of France can be prohibitively expensive.
Another vital consideration is how to get there – if regular weekend escapes are your want, journey times will need to be kept to a minimum. Train services are improving all the time, though, and budget airlines such as Ryanair and easyJet now fly to dozens of French destinations.
SHOULD I RENT MY PROPERTY WHEN I AM NOT USING IT?
This depends whether you want to fill it with your personal possessions and keep it for your own use, or sacrifice some flexibility for extra cash. Unlike other countries in Europe, the law regarding UK buyers in France is clear cut. It’s worth investigating the government backed scheme, Residence du Tourisme (RdT). Also known as leaseback, this scheme allows buyers to buy a RdT property and lease it back to a management company in order to receive guaranteed rental income. The amount you earn on your property is normally based on current inflation and the lease tends to be fixed for 9 to 11 years.
Another advantage of this scheme is that the TVA (VAT in the UK) you would pay on the property is refunded to you. There are, of course, lots of rules and regulations, but if you’re not afraid of paperwork it’s worth talking to an agent. You could also let the property via a holiday letting company. Do remember that the company will have a number of properties on its books (which yours will have to compete with) and it will also take a commission.
Another alternative is to do it all yourself and advertise your home through The Lady, for example, and similar publications.
WHAT HAPPENS WHEN I FIND THE IDEAL PROPERTY?
Properties in France are owned freehold, so there is no worry about the pitfalls that surround buying leasehold. The buying process does differ, though, depending on whether you are buying an existing property (resale) or a new build.
If you have chosen a resale property, you and the agent will sign a legally binding document (compromis de vente). This states, among other information, the price, any fees and your rights. There is a seven-day cooling-off period, so if you decide to pull out of the sale your deposit will be refunded.
The whole process of buying the property can take a few months. The final deed (acte authentique) will be drawn up during this period. The last stage is the signing of the sales deed (acte de vente), which both you and the agent will sign; then the property is officially yours.
Buying a new-build property is similar, but instead of signing a compromis de vente, you will sign a reservation contract, which will outline the price, the date the build will finish (if it hasn’t already) and the payment terms. Once this is signed the property is taken off the market. Again, there is a seven-day coolingoff period, during which you can pull out of the sale and still get your deposit back. The purchase process also takes a few months to complete. Even if the property is not finished by the time you sign the final contract, it is legally yours once the correct signatures are on the paperwork.
It should be noted that with either type of property you do not have to be present to sign the contract, your lawyer can sign on your behalf.
WHAT HAPPENS IF I WANT TO SELL UP?
If you decide to sell your property you will have to pay capital gains tax, which is currently set at 19 per cent in France. But if you are a nonresident you may be liable to pay tax in the UK, too. However, you will not pay the same amount again. Britain and France signed the double taxation treaty in 2009. You can declare the amount you paid in France and this will be offset against any UK liability.
There are exemptions, however, so seek professional advice before you proceed.
To find properties or for more information on guides to each region, capital gains tax and more, visit www.frenchpropertylinks.com
This depends on budget, your interests and what you want from your holiday experience. Do you crave mountains for adventure and long walks, a busy urban setting, or a seaside retreat? Also, consider the climate. If you seek plenty of sunshine, remember that popular destinations such as Normandy and Brittany have a similar climate to the UK, while some areas of the balmy south of France can be prohibitively expensive.
Another vital consideration is how to get there – if regular weekend escapes are your want, journey times will need to be kept to a minimum. Train services are improving all the time, though, and budget airlines such as Ryanair and easyJet now fly to dozens of French destinations.
SHOULD I RENT MY PROPERTY WHEN I AM NOT USING IT?
This depends whether you want to fill it with your personal possessions and keep it for your own use, or sacrifice some flexibility for extra cash. Unlike other countries in Europe, the law regarding UK buyers in France is clear cut. It’s worth investigating the government backed scheme, Residence du Tourisme (RdT). Also known as leaseback, this scheme allows buyers to buy a RdT property and lease it back to a management company in order to receive guaranteed rental income. The amount you earn on your property is normally based on current inflation and the lease tends to be fixed for 9 to 11 years.
Another advantage of this scheme is that the TVA (VAT in the UK) you would pay on the property is refunded to you. There are, of course, lots of rules and regulations, but if you’re not afraid of paperwork it’s worth talking to an agent. You could also let the property via a holiday letting company. Do remember that the company will have a number of properties on its books (which yours will have to compete with) and it will also take a commission.
Another alternative is to do it all yourself and advertise your home through The Lady, for example, and similar publications.
WHAT HAPPENS WHEN I FIND THE IDEAL PROPERTY?
Properties in France are owned freehold, so there is no worry about the pitfalls that surround buying leasehold. The buying process does differ, though, depending on whether you are buying an existing property (resale) or a new build.
If you have chosen a resale property, you and the agent will sign a legally binding document (compromis de vente). This states, among other information, the price, any fees and your rights. There is a seven-day cooling-off period, so if you decide to pull out of the sale your deposit will be refunded.
The whole process of buying the property can take a few months. The final deed (acte authentique) will be drawn up during this period. The last stage is the signing of the sales deed (acte de vente), which both you and the agent will sign; then the property is officially yours.
Buying a new-build property is similar, but instead of signing a compromis de vente, you will sign a reservation contract, which will outline the price, the date the build will finish (if it hasn’t already) and the payment terms. Once this is signed the property is taken off the market. Again, there is a seven-day coolingoff period, during which you can pull out of the sale and still get your deposit back. The purchase process also takes a few months to complete. Even if the property is not finished by the time you sign the final contract, it is legally yours once the correct signatures are on the paperwork.
It should be noted that with either type of property you do not have to be present to sign the contract, your lawyer can sign on your behalf.
WHAT HAPPENS IF I WANT TO SELL UP?
If you decide to sell your property you will have to pay capital gains tax, which is currently set at 19 per cent in France. But if you are a nonresident you may be liable to pay tax in the UK, too. However, you will not pay the same amount again. Britain and France signed the double taxation treaty in 2009. You can declare the amount you paid in France and this will be offset against any UK liability.
There are exemptions, however, so seek professional advice before you proceed.
To find properties or for more information on guides to each region, capital gains tax and more, visit www.frenchpropertylinks.com