Paying for property in pounds.

[slmillar]

With the pound rubbish, I have been to France to look for property, and my question is:

Can I pay in pounds to someone who is moving back to UK. Straight bank transfer.

No currency conversion fees, except for local notaire etc. costs.

Seller and buyer saves currency conversion fees etc.

Both parties also know what they are paying/ getting

Bad pound is almost circumvented.

Do the French authorities like this?

[Cat]

Other threads covering this topic http://www.completefrance.com/cs/forums/1570631/ShowPost.aspx

[gosub]

I spoke to a Notaire about this last week and she said it wasn't a problem, the buyer would have to send the notaire the anticipated fees in €'s in advance of the sale. Also the seller would have to deposit any possible charges VAT or CGT if  applicable.

The only additional charges would be for a UK solicitor/commissioner of oaths to do the paperwork.

[Stan Streason]

Yes I did it.  Had to deposit enough to cover notaire and agents fees in euros.  Left the rest with a mutually agreed uk solicitor.  He released the funds direct to the vendor on the joint instruction of myself and the notaire.  UK solicitor cost me a couple of hundred pounds.  Check the notaire in advance that he is prepared to act that way.

The documentation is still noted in euros and I had a side note that the stated euros amount would be settled by the sterling amount.  One drawback is that the translated cost in euros is relatively low because of the exchange rate.  Good for the vendors capital gains but bad for your initial base cost.  I missed a trick but you could try to renegociate the price a bit to share his lower capital gain benefit. 

Whole thing worked like a dream.

PM me if you need anything further

 

[mint]

SS, not everyone is liable to pay capital gains tax; certainly not if the house is the vendor's principal residence.

[Stan Streason]

[quote user="sweet 17"]SS, not everyone is liable to pay capital gains tax; certainly not if the house is the vendor's principal residence.[/quote]

Sorry I jumped to a bit of a conclusion in that if the vendor wanted sterling there was a high chance it was a second home.  (It was in my case).  Didnt go back and read the OP where it was someone returning to the UK.