How to purchase your French dream home...

Steps to buying a property in France with a French mortgage.

Here is some helpful advice for buying a property in France and securing your French mortgage.

Even before you find your French property, we can assist you by obtaining an agreement in principle from our French panel of lenders. This will give you confidence knowing that a panel of underwriters has already briefly assessed your situation before you even go to France, and has agreed in principle to provide you with a mortgage for your French property purchase.

1. Documents required at the early stages

When you select the property in France that you want to purchase, you need to obtain:

• Copies of the signed sales contract / purchase agreement

This document is required by all banks in France before a property survey can be undertaken. They should be available from the seller or the estate agent (or developer if it is a new property).

2. French bank account

The next step is to open your French bank account. We can assist you with this from our London office.

3. Purchase and renovation mortgage details

On a purchase and renovation mortgage in France there are several options that the lenders will consider financing:

• Purchase of land only, up to 50% LTV
• Purchase of land then construction, up to 85% LTV
• If the land is already owned then the lenders will consider funding up to 100% of the construction costs.

In order for the lender to give an idea of its value after renovation, the client will need to submit full plans and estimates from their builder or surveyor/architect with their mortgage application so that the lender has something substantial on which to base their assessment.

4. Additional documentation you will need to provide

The following is a list of the usual documents that are required with your French mortgage application. All French mortgages need to be supported by proof of income documentation, as non status mortgages in France are not available.

• Certified copy of passports
• Birth certificate
• Previous two tax returns. This can be in the form of P60’s if you are employed, or audited accounts if self employed.
• Previous six months bank statements
• Signed copy of the sales purchase contract
• Credit report
• Copy of the planning permission (if you are constructing or renovating the property)
• Letter from your employer confirming your employment with the company and salary plus three months pay slips if you are employed, or a letter from your accountant confirming your last two years net profit figures if you are self employed
• Confirmation of any other stated income
• Confirmation of any stated liabilities (e.g. latest mortgage statement)

If you are looking to rent your French property:

Some items to be aware of if you are planning to rent your French property.

• You may not be able to find a tenant for your French property all year round. You will need to take this into consideration when working out the affordability of the property you are considering
• Costs you may incur include cleaning and maintenance.
• You may be liable to tax on your rental income. You should always seek independent advice from a tax expert.

With regards to closing costs in France on the purchase of your French home, the general guideline is to allow around 8% of the purchase price for property tax, registration, legal fees and the like. You can request a breakdown of these costs from your lawyer.