Handy at DIY? Look at this selection

Many of our clients have asked us for properties to renovate. We have a good selection including this stone priests house in the Aude, this house near Carcassonne for just €275,000 and this country house in Herault that can be expanded for just €315,000.

Save 1000's of pounds on your currency transfer

Don't make the mistake of buying your currency for your new property through your high street bank. Try a regulated currency broker

Financing your property in France - what you have to do

Finding a mortgage in France to suit your needs is a straightforward process. Mortgage lenders such as HBSC, UCB (formerly Abbey National) and Barclays, plus a host of other French banks, offer flexible loans of up to 85% of the property value, often for up to 20 or 25 years. In addition, banks in France can often lend for renovation work on the property. We also have links with mortgage brokers who can advise and help in the selection of banks and mortgages, including the European wide Spectrum-IFA  financial services company. Please read on to find  out what you need to provide to get a mortgage, plus a few facts and figures about borrowing to buy in Languedoc. TotallyLanguedoc have a comprehensive list of mortgage lenders and mortgage information on our useful links page.

Preparing for your mortgage application

What documentation do you need?
Although you have either 30 or 45 days to get a mortgage (depending on the contract) after the Compromis de Vente has been signed, it's best to start to building your mortgage file as quickly as possible. What follows should be everything you need to send to your mortgage lender in France as you move into the purchase process.    

1a) If you are employed
Letter from employer(s) specifying your professional status, length of service and gross annual income

Copy of your last 3 most recent salary slips and most recent P6O   

1b) If you are self employed
Photocopies of the last 2 years certified balance sheets and profit and loss accounts  
Photocopies of the last 2 years personal tax returns (complete) and the most recent notice of assessment    

2) Your income details
Statement of any income other than from principal employment (including rental income, tenancy agreements and bank statements showing the rental income)  
Statement of any investment income declared  
Statement of any pension income received     

3) Other personal documents
Photocopies of each applicant's passport showing photograph and personal details, and carte de séjour if resident in France
Photocopy of your birth certificate or marriage certificate or divorce decree  
Last rental statement (if you are a tenant)  
Most recent statements for all existing loans/mortgages and credit cards
Photocopies of the 3 most recent months' continuous bank statements showing income, loans, mortgages and regular outgoings
A voided cheque from this account

4) Property documents
Copy of 'compromis de vente' - this is vital
If you are building a new property: property title or preliminary sales agreement for the land and building licence - building contract and plans  
Plus: Photocopies of all the quotations and insurance certificates for the builders
For an existing property, completed constructions or those sold under VEFA contract: sales agreement or reservation contract
For renovation or improvement works to be carried out, and paid for by the mortgage: professional estimates or invoices  
For re-mortgage and equity release: title deed, loan deed, complete repayment table (current)

5) Other Information required
Proof of deposit - statement showing the lump sum that you are putting into the project
A utility bill. (valid within the last 3 months)
List of other banks that you have already approached if applicable

How much can I borrow and in what way?

EU residents may be able to borrow up to 85% of the property purchase value, depending on their nationality. Non EU residents may only be able to borrow up to 75%. The loans can be for up to 25 years, depending on age and bank chosen and the long-term rates (after introductory offers) range from 3.2% up to approximately 4.5% on a repayment basis. You can discuss with the banks which is the best product for your project.

Interest Only mortgages
Interest only deals are available if you really want to reduce the monthly repayment to a minimum but unlike the UK you are obligated to place a deposit into a French investment scheme that runs along side the mortgage and is somewhat controlled by the bank. These schemes can have significant inheritance tax advantages and can offer flexibility if you are going to turn over a lot of properties as they can be kept as the deposit for the next purchase. We can give you the details of a qualified and regulated 'courtier d'assurance' in France who can assist with the mortgage and broker these for you should you wish to discuss this option. Some banks also offer a product which is interest only for 5 years and then repayment for 15years. This is particularly useful if you believe you will pay off large sums in the first 5 years.
 
Buy to let mortgages
Many people ask if they can buy on a buy to let basis, and the short answer is no. Future rent can be taken into account but the bank will normally devalue the property by 10% and then lend 85% of the 90% valuation, meaning a larger deposit is needed. The bank will also only take 80% of possible 'long term, unfurnished' rental income into account, which is considerably less than what you will probably achieve through seasonal weekly lettings.

Spectrum IFA Mortgages and Financial Advice

The Totally Property group has been working closely with The Spectrum IFA Group for the last three years to help our clients find the best financing solutions for their property purchase. Their combination of expert knowledge, approachable advice and professionalism has helped many of our clients find great mortgages specific to their situation.

The Spectrum IFA Group is a European wide financial advisory brokerage who concentrates on assisting English speaking expatriates and non-residents with all aspects of financial planning. They are proud of their philosophy of acquiring Regulatory Registration in each of the countries that they work in. This means that their clients know that they are dealing with a serious, legitimate business who is here to stay and who wish to build a reputation for excellent advice and customer care, qualities that we appreciate and share.

Through their own skills and knowledge base or through their network of experts The Spectrum IFA Group will help you with all of the following:
•    French Mortgage advice
•    French and International Tax planning
•    The legal structure of property ownership, if appropriate.
•    French and International banking, savings and investment.
•    Inheritance & Wealth tax mitigation and planning.
•    French and International retirement planning.
•    Portfolio Management and Monitoring.
•    Wealth Management

We recommend that your first point of contact is with Peter Brooke of the Spectrum IFA Group Cote D’Azur office. He has an in-depth knowledge of the French mortgage market and can provide you with a no obligation and no cost consultation by email, telephone or face to face to help you evaluate the affordability and suitability of your potential mortgage.

Peter will take you through the qualification rules of applying for a loan in France and can even give you a very good idea as to which bank will be best for you and how much your repayments will be.
If you are not considering getting a mortgage it still might be a good idea to discuss your project with Peter as he will be able to advise you on the legalities and tax implications of property ownership in this beautiful country.

Peters contact details are
Email: Peter.Brooke@spectrum-ifa.com
French Mobile: +33 (0)6 87 13 68 71
French Tel: +33 (0)4 93 00 01 13
French Fax: +33 (0)4 93 00 01 14
Skype: pbrooke
Post: The Spectrum Group, Mediathel, Routes des Cretes, 06560 Valbonne, France