House swaps

[Twizzle]

With the current problems in both France and UK, I was wondering wether the option of "House Swaps", is becoming more common. I know there is a huge market for holiday swaps, but what if you are desperate to get back to uk and cant sell your house? Is there a way to contact someone in UK (or elsewhere) who may be just as desperate to get to France and cant sell their house. If the properties are roughly the same price. would there be huge legal problems?

[magic]

One of our local estate agents has just started `house swaps` to allow people to up grade with people who want to down size. The local paper says it is now a thriving part of their business.

[AnOther]

This has been mooted several times in the recent past and I'm sure there is an opportunity for someone to setup a business facilitating it and bringing potential swappers together.

I have no doubt that some of the logistics could prove vexing in the extreme, but in it's favour you'd likely be working with 2 sets of people who are more committed, able, and willing to proceed with a deal than with your traditional buyer/seller scenario. Perhaps rather than an out and out swap it might be less problematical to sell to each other for a paltry sum like £1000/€1000 for instance, lot's of ideas to kick around.

It would be really interesting to hear from someone who has actually done it, there must be someone out there.

[Scooby]

We swap homes regularly but only do temporary holiday swaps.  Lots of  (mainly retired / working from home /

sabbatical) people are interested in long term swaps of up to a year so if you wanted to spend long periods in the UK without giving up your French life it's a way forward.  We have swapped to Ireland, other parts of France, US, the Caribbean, Canada, Brazil, Portugal, CZ Republic, Spain, Iceland.  We often swap cars, club memberships - even pets!!

It isn't complicated and you would definitely find someone in the UK wanting to come to France.  I'll pm you with the clubs we are in and just feel free to ask if you want any info / advice. 

[Clair]

[quote user="Scooby"]We swap homes regularly -  to Ireland, other parts of France, US, the Caribbean, Canada, Brazil, Portugal, CZ Republic, Spain, Iceland.  We often swap cars, club memberships - even pets!![/quote]

I think the OP is referring to a property exchange rather than a holiday swap.

[NormanH]

[quote user="ErnieY"] Perhaps rather than an out and out swap it might be less problematical to sell to each other for a paltry sum like £1000/€1000 for instance, lot's of ideas to kick around.

[/quote]

There you could run into problems with the Mairie exercising the 'Droit de préemption '

[Scooby]

I can't see that there would be legal problems with a permanent house swap.  I have seen (and advised on) swaps of business properties, homes etc here in the UK with the settlement of any difference in cash.  From a UK tax perspective the proceeds of sale are the combined amount of the market value of the house received plus any additional cash consideration.  I'm not sure what the french plus-value equivalent calculation would be but a notaire would be able to advise.

[Scooby]

Not sure why the rights of preemption would be a problem - it's a standard option in any sale of French property and one that is rarely exercised.

[gosub]

[quote user="Scooby"]Not sure why the rights of preemption would be a problem - it's a standard option in any sale of French property and one that is rarely exercised.

[/quote]

If the property was on sale for a "paltry sum" the Mairie would snap it up.

[NormanH]

That's what I was implying gosub

There is the additional  problem that selling for a 'paltry sum' might be seen as a wangle to avoid the tax on the 'plus value', if it was a 'résidence sécondaire'

[AnOther]

I think you're all taking this too literally, perhaps if I'd said 'nominal' instead of paltry.............just ideas peeps [blink]

If it's a completely private agreement between 2 parties how exactly could a Mairie 'snap it up' anyway ?

[Scooby]

You missed the point that I was making - the consideration is not the cash adjustment but the market value of the UK house plus any additional cash sum.  Exchanges of property with additional consideration are common place and frequently happen in business reconstructions.  As I said I have advised on several such transactions in the UK.   The UK tax system accommodates them so I see no reason why the French tax system hasn't got similar provisions.  To step into the shoes of the French seller the Mairie would have to give the vendor the value of the UK house plus any cash.

[NormanH]

I think we are talking at cross purposes.

You are talking about a house exchange.

ErnieY also suggested buying for a nominal sum of say a 1000 euros.

It is that suggestion that I was saying could cause problems.

On a general point I don't think that it is good practise to assume that because something is done in a certain way in the UK, it will ( or can) be done like that in France.

[maggie1234]

I think house swops are a good idea If you can find the right property.  There are many people willing to swop but not necesarily in the area you want.  For example  I own a house in Co Durham which I  have on the market for around £200,000 and am looking to swop to a house or apartment in South East France (one hour from Lyon).  I have already viewed 2 properties which were both beautiful but not quite right.  I'm open to any more suggestions.