Rent to Buy

[Barryk1]

Hi heard about a scheme in France called rent to buy , anyone else got any info

Baz

[Pickles]

[quote user="Barryk1"]Hi heard about a scheme in France called rent to buy , anyone else got any info[/quote]

This is a system called "location-accession" where (typically) you basically rent for the first year and have an option to buy the property beginning in the second year. The idea behind it is to promote the acquisition of homes by people who might otherwise be in HLMs. There are some "gotchas" in terms of the ceilings on the income levels of applicants on the one hand and the need to meet the legal requirements for the loan repayments not to exceed 33% of your income on the other. It is aimed at providing a primary residence. There are benefits in terms of VAT reductions and exoneration from TF for an extended period. From what little I've seen of the scheme, it seems that demand frequently outstrips supply by a country mile.

The usual caveats apply: make sure that the property is actually WORTH the price being demanded (eg quite often, somehow the builder seems to get the benefit of the VAT difference!)

Regards

Pickles

[Ellis]

This sounds very interesting. Has anyone done it?

[Pickles]

[quote user="Ellis"]This sounds very interesting. Has anyone done it?[/quote]

I think that it is very unlikely that someone moving into France from the UK would get to use this mechanism, for reasons of supply and demand if nothing else. A good summary of the scheme can be found at:

http://www.hlm.coop/spip.php?article187

Details of the split of the under 2500 units approved nationwide in 2008 can be found on the same site:

http://www.hlm.coop/spip.php?article867

Regards

Pickles