The Tailored Home Property Buying Guide to France

Overview
TailoredHome.co.uk’s Property Buying Guide to France can help you narrow down the vast choice of French property on offer in France, one of the most popular second-home destinations for buyers from the UK for decades. The country is rightly admired for its long, colourful history, a wealth of art and culture, sensational regional gastronomy and an inspiring range of landscapes and climates to enjoy. Whether you prefer a Mediterranean beach home or a mountain chalet, a stylish city apartment or secluded country cottage, France has them all in abundance.

Whatever your budget, there’s almost certainly a property in France to suit you. Our nearest continental neighbour, it’s also one of the easiest countries to get to, with numerous options by road, sea, rail and air. The French property market hasn’t suffered the same dramas as those of some other European destinations recently, though there are certainly deals to be done there if you’re willing to negotiate.
 
France’s enduring popularity (both with British property buyers and as the world’s leading tourist destination) makes it a sound long-term investment choice. The “leaseback” scheme introduced a few years ago makes buying new-build  qualifying for the scheme particularly appealing over the long-term, as buyers will get the VAT element of the property price refunded, plus a guaranteed rental income, if they hang on to it for (usually) nine years.
 
British citizens have the freedom to work and live in France without restriction, making it a popular place to relocate to. Schools and hospitals are of a high standard all over France and the cost of living also compares well with the UK. There are some regions where there are already established British expat communities very happy to help new arrivals feel at home.
 
Numerous UK and French banks offer mortgages for buying homes in France and the buying process is straightforward and secure. British buyers have no restrictions on property ownership there and whatever type of property in France you’re looking for, our property finders can source homes for all budgets and requirements.
 
Property hotspots

Paris

One of the world’s most-visited capitals, Paris is certainly an important cultural and commercial city as well as being one of France’s most expensive real estate regions. Divided into 20 numbered districts (“arrondissements”), there’s a diversity of neighbourhoods and property types on the market.
 
Perennially popular, but expensive, are the central 1st (Louvre), 4th (Marais) and 6th (Luxembourg), where many of the city’s wealth of shops, museums and cultural sites are located, and further west the 16th (Passy). Less pricy, but worth consideration, are the 9th (Opéra) north of the Seine and the 14th (Observatoire), located to the south.

French Riviera (Côte d’Azur)
Though you may think that resorts like Nice, Cannes and St Tropez are the preserve of the super-rich, you might be surprised to discover there are affordable french properties in these glamorous destinations and elsewhere along this chic French coastline. The fantastic climate and beautiful scenery of the southeast corner of France have long attracted an affluent crowd to its numerous sandy beaches, coves and harbours.
 
Of course, multi-millionaires will not be disappointed by the choice of superb luxury villas overlooking the azure Mediterranean waters but shop around (better still, get TailoredHome.co.uk to shop around for you) and it is possible to find good apartments and villas for a more modest budget.

Languedoc

The southern region of Languedoc-Roussillon is a popular holiday region, with plenty of resorts along its Mediterranean coast, many campsites and some great rural and Pyrenean mountain destinations too. Its many vineyards thrive under the summer sun and the rains of the mistral winds.
 
French property buyers hoping to find a property in southern France are often struck by the relatively low house prices in Languedoc compared to elsewhere in the south, whether in its beach and harbour towns on inland in some of France’s most traditional countryside areas. The Languedoc’s excellent road, rail and air connections add to its appeal as a holiday home location.

Brittany

The region has an abundance of appealing locations for a holiday home and has long been a favourite holiday home choice for many British property buyers looking for French Property thanks to its proximity to the UK and great transport links via sea, road and air. Prices here are still very reasonable.
 
Brittany’s coastline is characterised by a combination of superb beaches, rocky cliffs and charming fishing ports. Buyers are also drawn to the lifestyle offered by some of its inland villages and country towns. Neglected countryside homes in Brittany are a popular option for buyers looking for a cheap “doer-upper” in need of renovation. 

Dordogne

One of France’s most scenic and historic regions, the Dordogne offers buyers some exceptional landscapes. There are over 4,000 chateaux in this southwestern corner of the country, set in its forested hills and valleys, among the vineyards of Bergerac and along the river that gives the region its name.
 
There are more modest french properties available too of course, though its popularity with foreign buyers has resulted in the Dordogne becoming one of France’s more expensive areas, though it’s definitely worth shopping around. A number of expats have already made their home in the Dordogne, drawn by the terrific climate and lifestyle on offer. There are plenty of scheduled flights from the UK to airports in and around the region, so accessibility is good. 

French Alps

Some of France’s alpine resorts are among the best-known winter sports venues in Europe, with names like Chamonix, Courchevel, Meribel and Val d’Isere synonymous with high-quality skiing and top-class facilities. Unsurprisingly, homes in some of these most popular mountain towns and villages can be expensive, though nearby property of similar quality can be much more affordable.
 
Buyers can find traditional and new-build property in many resorts. Great connections by road, rail and air ensure easy transit to your holiday home for you and a large international audience of potential rental customers. Canny investors will look out for additional local amenities that will appeal to summer tourists too – hiking, cycling and health spas draw many visitors to the spectacular peaks long after the snow and ice have melted.
 
Tourism

As the world’s Number 1 tourist destination, the French people are proud justly of a nation that can provide something to please almost everyone. World famous for its richness of history, art, and cuisine, France provides endless delights for “culture vultures” from around the globe. There’s also much to admire in its vast array of scenery and climate, including balmy coastal resorts, agricultural landscapes, extensive vineyards, lush river valleys and breathtaking mountains. Its many delights are unlikely to diminish, continuing to attract many millions of visitors annually across the country via a comprehensive road, rail, air and maritime transport network.
 
2005 – 76.0 million visitors
2006 – 78.0 million visitors
2007 – 81.9 million visitors
 
Climate
 
Location Summer (Jun-Sep) Min/Max Winter (Dec-Feb) Min/Max
Paris 12ºC/24ºC 2ºC/7ºC
Nice (Côte d’Azur) 15ºC/26ºC 3ºC/12ºC
Montpellier (Languedoc) 14ºC/29ºC 3ºC/12ºC
Brest (Brittany) 11ºC/20ºC 4ºC/9ºC
Dordogne 12ºC/26ºC 2ºC/11ºC
Chamonix (Alps) 7ºC/24ºC -7ºC/1ºC

 
Fast facts

Currency
Euro (EUR). GBP1.00=EUR1.25 (Oct 2008).

Population
64.1 million (2008 estimate)

Time zone
GMT 1

Visas
Citizens of the UK and other EU countries are not required to obtain visas to visit, work or buy a home in France. 

Buying process

Ownership restrictions
Foreigners are able to buy, own and sell residential and commercial property and land without restriction in France, regardless of their residential status.

Financial
A French bank account is not absolutely essential when buying a home in France, but having one will certainly make life easier as a homeowner, as some utilities companies will insist on payment by direct debit from a local account. There are a number of banks in the UK and France that provide a choice of accounts for residents and non-residents, so shop around for the one with the best deal for fees, transfers and even interest on your credit balance (a relatively recent concept in France).

Mortgage availability
A Loan-to-Value (LTV) of 70% to 80% is typically available for loans from a wide range of UK lenders and local lenders in France.

Legal
The property buying process in France is well established but quite different from the British system – a lawyer with knowledge of the French legal system will alert you to its quirks:
Organise legal representation. You’ll need to appoint:

• A public notary (notaire), an impartial government lawyer who will oversee the entire purchase process and make sure all the legal requirements and taxes are discharged properly; 
• Your own lawyer, preferably one familiar with both the French and UK legal systems.
• Conduct a survey, not obligatory for French mortgage lenders, but almost certainly essential if taking out a UK mortgage and advisable for peace of mind.
• The buyer and vendor both sign the preliminary sales contract (“compromis de vente”) detailing all aspects of the transfer. A deposit is payable by the buyer at this point, usually around 10% of the purchase price. There’s a seven-day “cooling off” period when the buyer can pull out of the transaction and retain the deposit.
  Around two to three months later, after all the legal searches have been completed, the final contract (“acte de vente”) is signed in the presence of the notaire, officially transferring ownership of the property. All outstanding purchase monies, fees, taxes and charges are now paid.
• The notaire lodges the title deed with the Land Registry. 

Transaction costs
The costs involved in purchasing a home in France are:

• Transfer taxes – The new owner must pay transfer taxes to the state, département and commune totalling around 5% of the purchase price. 
• Notary fees – These are fixed by law and non-negotiable. Allow around 1% of the purchase price, though the fee is subject to VAT of 19.6%. If more than one notaire is involved in the transaction, they split the fee between them.
• Land Registry fees – For re-sale property, around 0.1% of the purchase price is payable towards the Land Registrar’s salary, with a further EUR750 (£600) to EUR1,000 (£800) payable to cover fees, certificates and other charges. A lower registration fee applies to new-build properties.
• Legal fees – Allow around 1% of the purchase price for a French lawyer’s fee, and about the same for a UK lawyer, if you appoint one.
• VAT (TVA) – If the property is being sold within five years of completion, the purchase price will be subject to VAT (known as TVA), currently 19.6%. Check whether the price you are quoted includes TVA or not. If TVA is chargeable, the buyer pays a reduced registration fee. Relief from TVA is available if the property is sold under the leaseback scheme.
• Agent’s fee – Normally paid in full by the vendor, though this may be split with the purchaser in some instances. 
   
• Also allow costs for UK lawyers’ fees, mortgage arrangement fees, survey fees, translation fees and foreign exchange transfer charges
•  

Leaseback

The leaseback scheme (also known as “Residence de Tourisme” in France) applies to some new-build property schemes and was introduced to encourage the ownership and use of tourist properties all over the country.
 
Owners of “leaseback” property have their property managed for them by a professional management agency and earn a guaranteed rental income for the period of ownership. During this time, they’re allowed a certain number of weeks’ usage of the property for themselves.
 
As a reward for making their property available for rent during this period, owners who hold on to their property for a given amount of time (usually nine years) are refunded the VAT element of the purchase price. All new properties in France are subject to VAT charged at 19.6% (at the time of writing) so the reimbursement of this sum means a considerable saving (16.4%) on the market value of your home.
 
If you’re considering buying a new or off-plan property in France, it’s certainly worth looking for one that qualifies for the leaseback scheme.

Emigration

British and other EU citizens are able to enter France, look for a job, start a business and buy property without restriction or the need for possession of a residence permit (“carte de sejour”), though you must register as resident if you stay for longer than three months.
 
However, if you want to apply for permanent residency in France there is nothing to prevent you from making an application for a carte de sejour at the local “prefecture” or “mairie”. The process is quite heavy on administration and typically takes between two and three months, while the permit is usually renewable every five years.
 
EU citizens in employment in France will enjoy the same rights as French workers and qualify for the same social and health services as their French counterparts.
 
EU citizens moving to France without employment (e.g. students and retirees) must show proof of income (e.g. pension) or sufficient funds to live on without drawing on French social assistance or health insurance.

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