exist mortgages / loans

[Champak Pol]

What mortgages / loans exist to do up a property in france that we want to run as a gite?

[Patmobile]

[quote user="Champak Pol"]What mortgages / loans exist to do up a property in france that we want to run as a gite?[/quote]

Before we started creating our gites I attended a Gites de France seminar for aspiring gite landlords.  It was all in French of course, but a very informative day with speakers from Gites de France, the Fire Brigade, the Conseil General, the local tax office and a bank (BNP).  A manager from the local BNP spoke about special loans that the bank could make available for creating new gites.  We didn't take up this option, but we did successfully apply for a grant for our first 2 gites, and eventually got 12,200 euros from the Conseil General

I suggest you contact either your local branch of Gites de France or the BNP for details of what is available now.  Unfortunately I have long ago lost the printed handout that the speaker issued at the seminar, and only have my hand-written notes to remind me that it was BNP.

Patrick

[Eslier]

In general, mortgages and loans will be considered according to your current level of income. Banks will not be prepared to take into account any income you may get from letting your gite once the work is completed.

As Patrick said, there are some incentives if you go through Gites de France such as grants that can be made available (used to be up to 50% of the renovation cost - not sure if it still is). This does, however, tie you into a contract to let through GdeF for, I believe, a period of ten years. If your gite is in an area popular with EU visitors then this might prove to be a good thing but rental rates tend to be considerably lower than you could achieve by letting direct to, say, the British market. When I looked into it, GdeF took a 20% commission of the rental charged for the property but if you offset this against the fact that you wouldn't have any advertising costs that's not too bad. You just have to make your mind up whether you want to be tied into a long term contract.

[Patmobile]

[quote user="Eslier"]

As Patrick said, there are some incentives if you go through Gites de France such as grants that can be made available (used to be up to 50% of the renovation cost - not sure if it still is). This does, however, tie you into a contract to let through GdeF for, I believe, a period of ten years. If your gite is in an area popular with EU visitors then this might prove to be a good thing but rental rates tend to be considerably lower than you could achieve by letting direct to, say, the British market. When I looked into it, GdeF took a 20% commission of the rental charged for the property but if you offset this against the fact that you wouldn't have any advertising costs that's not too bad. You just have to make your mind up whether you want to be tied into a long term contract.

[/quote]

Yes, you do have to agree to join GdeF and keep the gite(s) in use as such for 10 years, as a condition of a grant.  I don't know if this applies to the special loans.

You do not, however, have to contract to allow GdeF to do all the lettings, and you don't have to let them set the prices.  We don't let them do any bookings at all. We charge what we want, and we may be the most expensive Gites de France in the area.  Business is very good - a record year last year, and already very significantly up on bookings this year.  Perhaps being the most expensive is a good marketing niche

Patrick

[The Riff-Raff Element]

Pat - Am I right in thinking that grants are also only to be used for

paying for works done by artisans? We didn't go along this route, but

did investigate the possibility of grants and I seem to recall that as

being one of the conditions.

[Quillan]

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