Market Update from April 2024

Posted on 25 Apr 2024 in French Private Finance
Market Update from April 2024

The French tax office requires a reporting called “déclaration d’occupation”, “declaration of usage”. Owners have until June 30th to complete.

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Market Update from January 2024

Posted on 26 Jan 2024 in Market
Market Update from January 2024

My New Year’s resolution is to be more optimistic in general, looking at the glass half full rather than… oh well, you know the rest. Well, it seems that the market is trying to help me maintain this positive attitude as the banks announced their new rates and they all have dropped. Some have been even smashed!

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Latest transaction: €300,000 mortgage in Messanges

Posted on 23 Jan 2024 in Market
Latest transaction: €300,000 mortgage in Messanges

Our clients came to us to finance a French property in Nouvelle-Aquitaine in south-western France. The first bank we approached could not finance this new build purchase as it was considered not urban enough.

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Market Update from December 2023

Posted on 11 Dec 2023 in French Private Finance
Market Update from December 2023

I sat for a while thinking about how I could review 2023 so I decided to look at how I reviewed 2022 12 months ago.
My introduction was the following: ‘’2022 was challenging at times for those looking to finance their French property purchase. However, whilst conditions will remain tight as we move into 2023…’’  Talk about an euphemism!

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Market Update from September 2023

Posted on 15 Sep 2023 in French Private Finance
Market Update from September 2023

What is new with the French mortgage market in La Rentree 2023? Well, let’s find out the good, the bad and the ugly.

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Market Update from September 2023

Posted on 15 Sep 2023 in French Private Finance
Market Update from September 2023

What is new with the French mortgage market in La Rentree 2023? Well, let’s find out the good, the bad and the ugly.

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Market Update from June 2023

Posted on 14 Jun 2023 in French Private Finance
Market Update from June 2023

The French tax office requires a new reporting request called “déclaration d’occupation”, “declaration of usage”

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Market Update from April 2023

Posted on 03 Apr 2023 in Market
Market Update from April 2023

A bit of sunshine on the French mortgage market coming your way! One of our main lenders is coming back after a hiatus to finance existing and off-plan properties all over the country.

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Market Update from March 2023

Posted on 10 Mar 2023 in Market
Market Update from March 2023

The banks in France are struggling to find their profitability on their mortgages, especially for non-residents.
Eventhough the ”Taux d’Usure” is increasing, the refinancing rate – which is the rate that the banks in France are buying the money at from the ECB to then lend it to the clients – has peaked again at the end of the February.

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The evolution of the rates in France since 1992

Posted on 21 Nov 2022 in Market
The evolution of the rates in France since 1992

The Tec 10 index, which ultimately dictates how much the French government pays to borrow money over 10 years in France, fell during the summer 2019 to its lowest ever level of -0.5% and now stands at 2.76% after an increase in 2022.

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The ‘’Taux d’usure’’ is increasing and it is not that bad of a thing!

Posted on 20 Jul 2022 in Market
The ‘’Taux d’usure’’ is increasing and it is not that bad of a thing!

An increase of the ‘’taux d’usure’’ may increase your chances of being financed!

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What is the French “Taux d’usure” and what is its role?

Posted on 06 Jan 2021 in Market
What is the French “Taux d’usure” and what is its role?

Some context The “Taux d’usure” is the maximum APRC (annual percentage rate of charge) which an individual could expect from a loan. A loan is considered usurious (understand illegal) when it is granted at an APRC that exceeds by one third the average effective rate charged during the previous quarter.  In France, the APRC (known […]

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House vs apartment: the battle of the costs

Posted on 23 Dec 2020 in Market
House vs apartment: the battle of the costs

There are many reasons which can push individuals to buy a house over an apartment and vice versa. In this article, we will not go deeper into the possible personal motivations but we will concentrate on the financial advantages and disadvantages of each of them. Price of purchase We all know that real estate prices […]

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New environmental laws in France: What are the impacts?

Posted on 09 Dec 2020 in Market
New environmental laws in France: What are the impacts?

The government presented the new environmental regulations (RE2020), which will concern the construction of buildings from summer 2021. What is this all about and what are the consequences?

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New lockdown in France: What are the impacts on the real estate market?

Posted on 18 Nov 2020 in French Private Finance
New lockdown in France: What are the impacts on the real estate market?

A new lockdown started, real estate agencies are forced to close and visits have been entirely forbidden. Will the real estate market recover from a second stop?

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Repayment vs Interest only: Which offer should you choose?

Posted on 04 Nov 2020 in French Private Finance
Repayment vs Interest only: Which offer should you choose?

Repayment and interest only mortgage both have benefits, the choice of the product should be adapted to your financial needs and your profile. In France, the choice isn’t always possible, banks will usually prefer their clients to go for repayment loans. Why so?  A quick explanation Repayment products work this way: your monthly payment is […]

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French capital gain taxes: How does it work?

Posted on 21 Oct 2020 in Market
French capital gain taxes: How does it work?

The capital gain is the difference between the purchase price and the selling price, and when the amount of the result is positive. Also, registration fees actually paid during the purchase or a flat-rate of 7.5% of the purchase price are accounted in. Moreover, It is possible to deduct the session costs and the VAT […]

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What is the “Viager hypothécaire” and how does it work in France?

Posted on 07 Oct 2020 in French Private Finance
What is the “Viager hypothécaire” and how does it work in France?

The “Viager hypothécaire” is a personal loan secured by a mortgage registered on real estate belonging to the borrower, granted without death insurance. What is it for? In comparison to classic mortgages, the purpose of this loan is to finance the personal needs of the borrower: health costs, home help, retirement home, work to improve […]

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Are there any agreements to prevent or limit double taxation between the UK and France?

Posted on 23 Sep 2020 in Market
Are there any agreements to prevent or limit double taxation between the UK and France?

When purchasing assets in France, the question of taxation always comes to mind. Special tax agreements exist between many countries to prevent or limit double taxation. The problem of double taxation arises from the fact that most countries tax income or earnings which originate from that country, whereas residents of these countries are also taxed […]

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What are French “viagers” and how do they work?

Posted on 09 Sep 2020 in Market
What are French “viagers” and how do they work?

The “Viager” contract is based on a simple principle: a senior sells his property to a purchaser who agrees to pay him a life annuity and a “bouquet”. This allows the buyer to invest in real estate for much less while ensuring the financial security of the seller until the end of his life. Why […]

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Can US Residents / US Citizens get a mortgage in France?

Posted on 19 Aug 2020 in French Private Finance
Can US Residents / US Citizens get a mortgage in France?

Since July 1st, 2014, the Foreign Account Tax Compliance Act (referred later as FATCA) has imposed obligations on foreign financial institutions in terms of registration, implementation of operational procedures, source deductions and reporting. So what are the consequences for US buyers and French banks? What makes it so difficult? For US citizens and US residents […]

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French Chateaux: A cheap dream hard to finance

Posted on 05 Aug 2020 in Market
French Chateaux: A cheap dream hard to finance

Getting a loan for a chateau is complicated for a French resident. For non-residents … it becomes even more challenging (but not impossible). What reasons can a lender have to refuse to finance a property of this type? 1 – Price & offer It must be said… there is no lack of offer. The French […]

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Should I get a UK mortgage for a French property?

Posted on 22 Jul 2020 in Market
Should I get a UK mortgage for a French property?

Borrowing abroad is possible. As a citizen of a member country of the European Union, you have the possibility of taking out a loan from a bank domiciled in one of the countries of the EU. But beware of local particularities! Concerning the UK, arranging a UK mortgage for a French property is a very […]

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How to refinance your home loan in France?

Posted on 08 Jul 2020 in Market
How to refinance your home loan in France?

1 – Refinancing: How does it work? Thinking of changing your mortgage in France to benefit from lower rates? When interest rates fall, it can become interesting to renegotiate a mortgage (mainly repayment mortgages) or have it repurchased by another lender to obtain a better rate. Refinancing, what are concretely the potential benefits? – reduced […]

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Mortgages options in France

Posted on 17 Jun 2020 in French Private Finance
Mortgages options in France

There are about 5 different mortgage options in France. Each has its own advantages and inconveniences but you will definitely be able to find the solution that suits you best and match your financial needs / projects. Which one is for you? The Classic French Mortgage: Lock in long term value The standard mortgage option […]

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After Covid-19, how has the French mortgage landscape changed?

Posted on 03 Jun 2020 in Market
After Covid-19, how has the French mortgage landscape changed?

1 – Overview of the situation Late 2019 and early 2020 saw French mortgage rates reach all time lows. During that time, we managed to secure a 20-year repayment mortgage with a fixed rate of 1.08% in the French Riviera, a 20-year repayment mortgage with a fixed rate of 1.20% in Paris and a 20-year repayment mortgage […]

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The French mortgage application process | part 2

Posted on 18 May 2020 in French Private Finance
The French mortgage application process | part 2

1 – FIXED OR VARIABLE RATE? Fixed rates The majority of loans in France for French property utilise a fixed rate for the term. Fixed rates are available over 10, 15, 20 and even 25 years. The rate is fixed for the entire duration of the mortgage. This offers a high level of certainty as […]

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Should you purchase your French property through a SARL (LLC) ?

Posted on 01 May 2020 in Market
Should you purchase your French property through a SARL (LLC) ?

An SARL is a limited liability company and one of the most common types of business in France and very popular with Foreign residents buying in France. This type of company must be composed of two or more partners or you can create an EURL (single-member company with limited liability) if you want to set […]

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The French mortgage application process

Posted on 20 Apr 2020 in French Private Finance
The French mortgage application process

1 – OVERVIEW AND COMMON ADVICES Contrary to common belief, getting a mortgage in France is relatively simple. The only thing that can surprise some property buyers is the amount of documentation required to complete the application process. With the assistance of an experienced French mortgage broker, you can use their knowledge and connections to […]

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How do French lenders calculate your maximum mortgage amount?

Posted on 16 Mar 2020 in Market
How do French lenders calculate your maximum mortgage amount?

1 – How to easily calculate a rough budget? To evaluate you maximum mortgage amount for a repayment product, simply follow this formula: Here is the best way to see quickly if your real estate project is achievable. Have also in mind that the result is just an estimation, for a more precise result, we […]

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What data do french lenders use to build your application?

Posted on 17 Feb 2020 in French Private Finance
What data do french lenders use to build your application?

1 – From marital status to age… French lenders will have a look at everything The first aim of the bank is to determine if you meet the requirements for your real estate project. Lenders will want to know more about your personal situation (marital status, age, health…) and about the property you wish to […]

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Why would you create an SCI for your real estate purchase in France?

Posted on 03 Feb 2020 in French Private Finance
Why would you create an SCI for your real estate purchase in France?

An SCI, or “Société Civil Immobilière”, is a company that allows a number of individuals to share one or more real estate entities. The partners of the SCI can make contributions ‘in kind’; movable or immovable property that they already possess. These contributions, most often in kind or in cash, give entitlement to shares in […]

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What are the market conditions to obtain a mortgage in France?

Posted on 20 Jan 2020 in Market
What are the market conditions to obtain a mortgage in France?

1 – Overview of the situation There has never been a better time to get a mortgage in France. Rates are currently just above their all-time lows, and this is for a number of reasons. The Tec 10 index, which gives a  view on how much the French government pays to borrow money over 10 […]

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Who is involved in your real estate purchase?

Posted on 06 Jan 2020 in Market
Who is involved in your real estate purchase?

The seller A seller has a good to sell at a price determined by the market and a buyer who seeks a good to buy according to price and criteria. But how do you choose a selling price?Purchasing through a mortgage, banks will check the real value of the property by ordering a valuation (sometimes to […]

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What is the new French property wealth tax (IFI)?

Posted on 23 Dec 2019 in Market
What is the new French property wealth tax (IFI)?

IFI? What is it? Since January 1st 2018, the Solidarity Wealth Tax (ISF) has been abolished and a new tax, the Property Wealth Tax (IFI), has been created. The IFI concerns persons holding a net property portfolio of more than €1.3m. Who has to pay? In 2018, 132,722 taxpayers had to pay the IFI tax […]

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Non-residents in France: who are they, where and what do they buy?

Posted on 24 Oct 2019 in Market
Non-residents in France: who are they, where and what do they buy?

In 2018, non-resident buyers represented 5.9% of real estate transactions for existing properties in France, but do they all buy in the same place? In today’s article, we will put international buyers under the microscope and examine where they come from and what they buy. Unsurprisingly, British buyers account for 27% of all non-resident real […]

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The main types of leases in France for real estate rentals

Posted on 11 Oct 2019 in Market
The main types of leases in France for real estate rentals

The empty rental lease A property is considered empty when it is not sufficiently equipped “to allow the tenant to sleep, eat and live properly in the light of the demands of everyday life.” This essentially means that the property is unfurnished.  The rental period of an unfurnished property is set six years. However, when […]

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The Mobility Lease or the Solution to rent his apartment from 1 to 10 months in all legality!

Posted on 24 Sep 2019 in Market
The Mobility Lease or the Solution to rent his apartment from 1 to 10 months in all legality!

This article is presented by RentYourParis.com When it was promulgated on November 2018, the ELAN law introduced a new type of lease to facilitate access for people on professional mobility: The Mobility Lease. What are the specificities? How to set it up? We will explain everything to you. The law defined the mobility lease as a short-term […]

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Buying a property: cash vs. mortgage

Posted on 13 Jul 2019 in Market
Buying a property: cash vs. mortgage

From a young age, many of us are taught that debt is something to be avoided.  However, is purchasing a property in cash always a better option than borrowing the money from a bank? We take a look at the pros and cons of each in our latest blog post. Pros for buying in cash […]

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Everything you need to know about “notaires”

Posted on 10 Jul 2019 in Market
Everything you need to know about “notaires”

Without a true UK equivalent, it can be difficult to understand the role of the notaire. In our latest blog post, we take a look at what they do and demystify the costs involved. What is a notaire and do I really need one? When selling or buying property in France there needs to be […]

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