Buying in France before selling in the U.K.

[Ruby]

I have recently heard of a new banking product whereby it is possible to buy in France before selling in the U.K.

I do know that you have to have a regular income. I believe this scheme is backed by the French Government with a view to keeping the property market moving.

I've Googled it but no joy. Has anyone got any more details?

Many thanks

[giantpanda]

Hi!

You can try to get a " crédit relais " ( about 60% to 80% of the value of the new house )

However lately it was rather difficult to get them, because the the banks were not certain you could sell your house in that period.

In all cases, you would have to bring a guarantee ( whereby a French bank will hardly accept your GB house here ), and contract a life insurance.

No such scheme at present to keep the property market moving.

There could be  in future, if the State guarantees such credits.

Yours,

giantpanda

http://www.dossierfamilial.com/logement/acheter-vendre/immobilier-bien-utiliser-le-credit-relais,1437

[5-element]

Ruby - crédit relais is the good old bridging loan.

[Ruby]

Many thanks, Ruby

[Ruby]

Thanks for that, Giantpanda

Ruby

[AnOther]

Risky business IMO. In the current climate you have no guarantee that your UK property will sell in the 2 year timeframe and as I understand it you have to repay the bridging loan after 2 years come what may.

I've often though that in these circumstances a property swap with someone wishing to return to UK - with +/- cash adjustment - would be a good plan, if you can find someone that is.

[P-D de Rouffignac]

In one of the recent reports on the state of the property market, it was noted that about 30,000 French people were caught in a bridging loan trap. They had taken out a bridging loan based on up to 80 per cent of the value of their existing property, repayable within 2 years, but have gone ahead and bought a second property - and failed to sell the first one within two years. Not only are they faced with two lots of loan repayments, but also if they reduce the sale price of the first property to get a sale (often being pressed by the banks to do so), the proceeds may not be sufficient to cover the bridging loan plus interest.

Looking at the UK, an RICS report this morning shows the volume of sales down by as much as 52 per cent in some areas, and prices down by 12 per cent, with estate agents selling an average of only one property per week. As in France, there is currently an over-supply of certain types of property (including many buy-to-let apartments) and problems for buyers seeking finance.

I always advise selling first before even starting to look for another property. It is invariably easier to buy than to sell, especially in these difficult times.

Peter-Danton de ROUFFIGNAC www.francemediterraneanproperty.com

[Pierre Tasse]

Listen to you're whining! OH BAW I CAN NO BUY A HOUSE, you do no come to France with a baw, you leave my country now. EU should build a big fence around the Englands and SEAL IT OFF.

[Scooby]

What an excellent idea Pierre!  I suggest that the building starts at the UK entry points from Cherbourg which should cut down the number of illegal immigrants coming to the UK from France quite significantly.  Now what about the two French girls working at my bank - which side of the wall should they be on?  I'm afraid we are now part of the EU - which means freedom of movement...both ways.

(PS the EU is that caring and munificent organisation that pays your farmers lots of money in agricultural grants...)

[Clair]

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