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Do all remortgages in France carry a hefty Notaire's fee?


Owens88
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Hi

 

We are looking to remortgage our french property purely to get a better rate . It seems that to do this in France is going to require a Notaire's fee

 

1) Is that alway ncessary ?

2) Is it really 3 % or is that negotiable ?

3) Would that also apply if getting a British bank to give us the mortgage ?  (i.e. is it linked to registering a 'change'  on the deeds which sounds like a £50 job rather than a £1500 job)

 

Thanks in advance

 

John

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Like most Notaire's fees they aren't fees in the UK sense more like stamp duties, in other words tax.

If you terminate a mortgage early you have to pay one tax (roughly 0.6%) , if you take out another mortgage that's another tax(roughly 2.0%) 

That's why people in France have traditionally taken a mortgage at a fixed rate, and then stayed with it for the duration.

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[quote user="Owens88"]

Many thanks BJSLIV.

 

If a non french lender was giving the mortgage would the 2.0% fee/tax still apply - i.e. is it like a stamp duty (except that there is no sale involved).

 

John

[/quote]

I believe much of the cost is that of setting up the new 'hypothèque' which has nothing to do with who is lending.

It is an internal French charge.

I could be wrong, but have had to pay once before for the 'mainlevée' when I paid off a credit early, and twice for the two mortgages I have on my present property.

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  • 2 weeks later...

The gist of what I have found is that :

a) Re-mortgaging in France necessitates a notaire's involvement which seems to cost between 2-3% of the loan amount involved, largely a stamp duty on the mortgage contract I believe.

e.g. My own lender says it is necessary to do that even just to switch mortgage product - NB No change of ownership, property or listing of those with 'charges' on the property.

b) Other than that it is like the British system. Brokers may charge you arrangement fees, so might lenders.

c) Life assurance (at a hefty fee) seems to be compulsory.

 

 

 

I have given up. Good luck.

 

John

 

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My neighbour has just "remortgaged" his house to buy out his wife, that is to say they are divorcing.

The good news is that his new mortgage is only 4.5% fixed for life, however when he adds in the penalty for early redemption of his existing one (which has less than a year to run) the 3% notaire fee, the 2%?? life assurance fee which he neither needs or wants, the banks arrangement fee etc etc it is not at all a cheap loan.

They have been handling the dossier for over 2.5 months now and he hopes it will be concluded within a couple of weeks.

I didnt have the heart to tell him that until recently (and perhaps even now)in England  this could have been arranged over the phone and implemented virtually immediately, however look what that ease of lending has resulted in.

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