New build fees

[PhilN]

I am having a property built on land I already own (with certificat

d'urbanisme). What are the total legal / admin fees made up of when

the property is complete? The builder has given me a quote including

VAT. Will I have to pay additional VAT at handover time, what are my

notaire's fees based on and are there any additional state

fees or taxes which are 'one off'? Thanks, Phil

[Teamedup]

Don't forget insurance for during the build. Quite expensive, and sorry as per usual cannot remember exactly what it is called, hope BJSLIV reads this as they will be able to say, well I hope so.

There is also one or two payments that the local tax people want that are sort of 'one off payments', don't know how much this will be as depends where you are. You could perhaps ask the local tax authorities how much it will be.

[Viv]

assurance dommage ouvrage, yes it's very expensive and often a hidden cost that isn't always mentioned straight away. I think it's usually calculated as being about 5 or 6 per cent of the total cost.

[Teamedup]

Thanks Viva, that is it. I just couldn't remember.

[BJSLIV]

As far as the DO is concerned I think 5 to 6% is a bit on the high side. If the work is being done by a reputable builder, it should be possible for the builder to arrange the insurance for something like 2 or 3%.

Other costs to allow for can include........................

Planning Tax in most areas say £3-£5000 for a typical newbuild.

Mains services connections. Say £500 to £1000 for each service  mains drainage, water, electricity and in some cases the phone). These costs rise significantly if they are not already in the road adjacent to the property.

Also its wise to allow for thje extras that crop up along the way. This is particularly true if you are buying an off the peg package.

Additional sockets.

Added tiling.

Fencing

Sorting out the garden after the builders have left.

Access to site

Kitchen and Bathroom fittings.

Fireplace.

Upgraded heating.

The good news is that if you already own the site there are no Notaires fees to pay, and the only time you would be liable to further VAT is if you sell within five years of completion.. If you were to sell the sale price is deemed to include VAT at 19.6% and the Notaire retains this , less any VAT you paid during construction. So hang on to those receipts!

 

 

[PhilN]

Thanks for your useful reply. Is the planning tax charged on completion

of the build or is this the fee for getting the permis construire? If

there are no notaire's fees does this mean there is no need for notaire

involvement? If so, what documentation do I get to prove the house is

mine when I eventually sell? I have heard that ownership of the land

gives me ownership of the property on it.

[BJSLIV]

The taxes are paid in two equal parts. The first 18 months after the permis is granted, the rest a further 18 months later.

[PhilN]

Thanks for the advice.

[Monika]

Would there be a similar tax on renovation and extension?

[Phillippa VIBO]

No, nothing extra to pay on renovation or extension, except that when planning permission is granted, for example for an extension, this will affect your Taxe Foncière which will be increased to take into account the increased living area of the property.

[BJSLIV]

If you increase your habitable space either by conversion or extension then most places will levy the additional taxes. Its not really that significant, typically £10 per square metre, but its nothing in some areas, double in others.

[michelin79]

 That's exactly what I thought Phillipa but read the thread started today titled Taxe Locale D'Equipement. I hope that I've misunderstood it 

Mike                                               

[BJSLIV]

 

A few extracts from the laws

Firstly calculate how much space you are adding

La SHON est égale à la surface hors œuvre brute de cette construction, après déduction :

a) des surfaces de plancher hors œuvre des combles et des sous-sols non aménageables pour l’habitation ou pour des activités à caractère professionnel, artisanal, industriel ou commercial ;

b) des surfaces de plancher hors œuvre des toitures-terrasses, des balcons, des loggias, ainsi que des surfaces non closes situées au rez-de-chaussée ;

c) des surfaces de plancher hors œuvre de bâtiments ou de parties de bâtiments aménagées en vue du stationnement des véhicules ;

d) des surfaces de plancher hors œuvre des bâtiments affectés au logement des récoltes, des animaux ou du matériel agricole ainsi que des surfaces des serres de production ;

e) d’une surface égale à 5% des surfaces hors œuvre affectées à l’habitation telles qu’elles résultent le cas échéant de l’application des a, b et c ci-dessus.

f) Les surfaces de plancher supplémentaires nécessaires à l’aménagement et à l’amélioration de l’habitabilité des logements destinés à l’hébergement des personnes handicapées

 

Note that agricultural space doesn’t count, but once converted it will count.

Secondly value the added area at the current valuation rate. These were current last year.

 

 

Catégorie 5°  Construction individuelle et ses annexes à usage d'habitation principale 1 a 80m² 334 Euros       81 a 170 m²     488 Euros Catégorie 7 Parties des locaux à usage d'habitation principale et annexes,  dont la surface hors oeuvre nette excède 170  mètres carrés  641 Euros
Catégorie 8 Locaux à usage d'habitation secondaire.      641Euros

 

Note that large properties and maison secondaire are charged at a higher rate.

Finally calculate the taxes due by multiplying the valuation by the applicable local rate for the local TLE (Usually 1 to 5%), the TDCAUE (0.3%) and the TENS.(1.3%).

Pour chacune des taxes, on multiplie la SHON par la valeur forfaitaire (en euro/m2) correspondant à la catégorie appliquée. Au produit ainsi obtenu, on applique un taux (pouvant varier par commune) pour la TLE, un taux de 0,30 % actuellement pour la TDCAUE et un taux de 1,3 % actuellement pour la TDENSThirdly calculate the taxes due

 

The taxes are payble in two equal amounts 50% 18 months after the permis is granted, the other 50% another 18 months later.