buying prcess in France

[franc o file]

HI, i am new to this forum and would like to ask some of the "old hands" for a quick, idiots guide to buying property in France

ie.what is the maximum mortgage i can expect as a foreiner, are there ways around this

how long does the buying process take?

what happens and when   

i have been looking at property in Spain and am pretty much up to date with the process there, is it similar in France

many thanks in advance

[Will]

1. Mortgages in France are governed by your income rather than the British rules. Repayments on ALL your borrowings must not amount to more than a third of your income.

2. Normally at least 12 weeks between signing the inital contract and completion of sale,

3. Far too complex to answer briefly - you need to do some more research and come back with more specific questions.

4. I don't know the Spanish system so cannot help you.

You also posted in another place, about work, but it is a read-only forum that we cannot reply to. You wil find work difficult unless you speak very good French and have French qualifications - Corgi counts for nothing. Expect a lot of expense and paperwork if starting your own business. You may find employment in a pig processing plant or similar.

Sorry if this is not what you want to hear - but it's how things are. They don't tell you that on the telly.

[Val_2]

CORGI is not recognised here in France so you may have to retrain to french regulations. Unless you speak good french employment will be hard to find and self employed is horrendous, I know from experience and you will never make a fortune here because the system is such that it charges you more for the more profit you make automatically hower small.  As for the buying process, Will has given you the basics as it was too long ago now for me to remember but I do know that borrowing money here is limited to the repayment as stated at no more than one third of your monthly income and the years are less, usually 15 although now the banks are beginning to extend and some are considering re-mortgaging but notaires are warning against that unless you really are desperate.To borrow money for a business you will have to have an accountant's letter stating your previous year(s) total etc. Do your homework thoroughly as many have come a cropper here and had to return or one partner has to the UK to find an income.

[ali-cat]

We're in the middle of the buying process at the moment - so hope our experiences help.

As Will says - average time scale - 3 months.

Once your offer is accepted the sellers will organise 4 different surveys - Lead paint, Infestation, Asbestos & now an Energy rating survey. Once these are received by the Notaire & you are happy with the results, you will sign a Compromis De Vente.  There is then a 7 day "cooling off" period, for the vendors & buyers, to withdraw from the sale.  We got our survey during these 7 days to be sure the house wasn't going to fall down around us - which thankfully, it isn't!!   [:D]

Deposit is paid after this period.  If you should, after paying the deposite, change your mind you have to pay the same amount again as a penalty (as does the seller).

The Notaire will then do their stuff & you will have to organise house insurance, before the final signing.  

Our Immobilier has told us they will help with the electric & water folk, come completion time & the phone we can hopefully sort out a few days before hand with French Telecom (found a wonderfully helpful man in the shop, in Geant, in Angouleme - who was the only person to really help us with our internet problems!!)

That's sort of it - in a nutshell.  If you have any spesfic queries, please fell free to PM me - but I can't help with Mortgage questions. 

 

[Deimos]

I thought that if you "fail to complete" after signing the C d V then the seller could sue you for their "out-of-pocket" expenses (e.g. ongoing loan costs on a 2nd property, etc.). My "thought" was not from experience but what I have "picked-up" and would be interested as to what the case is when a buyer "pulls-out" after signing the C d V.

Ian

[Will]

I tried to respond to ali-cat's post but for some reason my reply never appeared (something strange going on with the forum software I think because I have failed to get PMs or they have been delayed over the last few days).

The basic procedure is that you forfeit 10% if you fail to complete - this is normally taken care of by the deposit, and is supposed, as I understand it, to compensate all the other parties. That's not to say that you can't be sued for more - if, as you say, the seller has incurred extra expense, also if the notaire wants paying for the work he has done, and the agent wants his full fee.

The other things I wanted to mention following on from ali-cat's useful summary are that the 7-day period applies only to the buyer, and then strictly speaking only with good reasons for pulling out (it does not apply to the seller) - and that the surveys/certificates required, and detailed timetables, can vary.

[snowgirl]

Hello,

Since we're on the subject, are the freports for lead paint, asbestos etc provided automatically by the seller or do we have to request them?

REgards[:)]

 

 

[franc o file]

Thanks for all the info, i'm just in the "thinking about it" process at the moment so will keep you posted.

as i stated in the other thread, been looking in Spain but i don't think it offers very good value for money at the moment (not sure it ever will)

We used to have a static caravan in Argeles sur Mer for about 5 yrs and i really miss France and all the fabulous people we met, gotta talk my girlfriend around!!

 

Thanks again

[AnOther]

[quote user="ali-cat"]There is then a 7 day "cooling off" period, for the vendors & buyers, to withdraw from the sale[/quote]The rest is pretty well on the mark but this statement is not.

The 7 day cooling off period is for the buyer only, the vendor cannot withdraw once the Compromis has been signed.

I'll qualify that by saying they can withdraw but if they do they have to give you your deposit back plus an equal amount.

If you withdraw after the 7 days you lose your deposit and I've heard that the jilted vendor may be legally entitled to pursue you for the full purchase price but I can't verify this.

I was also told by a well known and respected English agent that if you agree a deal and sign a Compromis for under the full asking price and the seller subsequently receives another offer for the full price they can accept it but must first give you the option to match it. They cannot accept an offer above the asking price.

Maybe someone will pop up and tell us if this is true or not.

 

[Sunday Driver]

That well known and respected English agent clearly hasn't got a clue about buying and selling French property......[8-)]

Once you sign the compromis, that's it.  That's the sale contract.  The deal is done at the stated price.

 

 

[Will]

No, it's not true. Once the compromis is signed by both parties and the 7-day period has elapsed, the sale is firm and the seller cannot accept higher offers. The well known English agent should get his facts right before he can become 'respected'. What he was probably thinking about was that if you offer the asking price (uncondistionally) then you secure the house - if you offer less, then until the compromis has been signed by the seller, higher offers can be accepted . The seller will, if he is sensible, let you improve on those offers if you want, but there is no requirement to do so.

Regarding the asbestos etc certificates, these are provided by the seller and the buyer does not have to request them. The notaire must check they are present, and valid. The actual surveys required vary according to region - for example many places are not affected by termites so the insect survey is not necessary. 

[AnOther]

[quote user="Will "]What he was probably thinking about was that if you offer the asking price (uncondistionally) then you secure the house - if you offer less, then until the compromis has been signed by the seller, higher offers can be accepted . The seller will, if he is sensible, let you improve on those offers if you want, but there is no requirement to do so[/quote]I think perhaps you're right Will, either he was mistaken or my recollection was at fault.

I'll go and get a job in a pig processing plant as a pennance...[;-)][;-)]

[AnOther]

[quote user="Will "]...for example many places are not affected by termites so the insect survey is not necessary... [/quote]Our house is not in a bad termite area (so we were told) but the survey was done anyway and termites were found.....in the nice neat woodpile at the back of the house...!!

Needless to say the offending articles were removed pronto.

Something to watch when you're buying your logs next time.

[franc o file]

Hi All, thought of a specific question (3 actually)

1  how much would it cost to buy a french house on the market for say €100,000  all in, all fees, everything! (only roughly, don't need to the nearest cent)

 

2  if your income were great enough and your outgoings small enough could you, concievably, get a 100% mortgage

 

3  what is the typical interest rates charged by french banks (is it better to get a UK based loan  LOL )

 

I look forward to your replies and will tell you the situation in Spain (if you are unaware or even botherer)

  Many thanks

[Will]

1. 107,010€ - this assumes that the price includes any agency or negotiating fees (most agences will say FAI or similar, which means their fees are included). There will be an additional legal charge for registering the mortgage - depending on the type of mortgage and the amount.

2. Yes, but you would need to go to a specialist broker rather than a normal bank, and expect to pay a higher rate of interest.

3. Normal rates are slightly below British banks at present - again it varies. An average is about 4% - some slightly less, some a bit more.

[bloodyestateagent]

Good post!

[Albert the InfoGipsy]

Just an extra point on the 7 day cooling off period. It does not apply if you are buying a building plot (terrain).