Owens88 Posted December 31, 2008 Share Posted December 31, 2008 Hi We are looking to remortgage our french property purely to get a better rate . It seems that to do this in France is going to require a Notaire's fee 1) Is that alway ncessary ?2) Is it really 3 % or is that negotiable ?3) Would that also apply if getting a British bank to give us the mortgage ? (i.e. is it linked to registering a 'change' on the deeds which sounds like a £50 job rather than a £1500 job) Thanks in advance John Link to comment Share on other sites More sharing options...
BJSLIV Posted December 31, 2008 Share Posted December 31, 2008 Like most Notaire's fees they aren't fees in the UK sense more like stamp duties, in other words tax.If you terminate a mortgage early you have to pay one tax (roughly 0.6%) , if you take out another mortgage that's another tax(roughly 2.0%) That's why people in France have traditionally taken a mortgage at a fixed rate, and then stayed with it for the duration. Link to comment Share on other sites More sharing options...
Owens88 Posted January 1, 2009 Author Share Posted January 1, 2009 Many thanks BJSLIV. If a non french lender was giving the mortgage would the 2.0% fee/tax still apply - i.e. is it like a stamp duty (except that there is no sale involved). John Link to comment Share on other sites More sharing options...
giantpanda Posted January 1, 2009 Share Posted January 1, 2009 Hi!You will find very few, if not no foreign banks at all, who will for a private person mortgage an object in France.The matter requires a basic organisation specific to the country, which is not worth while the investment.Yours,giantpanda Link to comment Share on other sites More sharing options...
NormanH Posted January 1, 2009 Share Posted January 1, 2009 [quote user="Owens88"]Many thanks BJSLIV. If a non french lender was giving the mortgage would the 2.0% fee/tax still apply - i.e. is it like a stamp duty (except that there is no sale involved). John[/quote]I believe much of the cost is that of setting up the new 'hypothèque' which has nothing to do with who is lending.It is an internal French charge.I could be wrong, but have had to pay once before for the 'mainlevée' when I paid off a credit early, and twice for the two mortgages I have on my present property. Link to comment Share on other sites More sharing options...
Owens88 Posted January 1, 2009 Author Share Posted January 1, 2009 [quote user="NormanH"]It is an internal French charge.[/quote] Ah a Tax to encourage staying still- and at a level completely unrelated to the underlying costs. Cheers Link to comment Share on other sites More sharing options...
Danglar Posted January 11, 2009 Share Posted January 11, 2009 Hello John.Perhaps for the benefit of all those who look forward to remortgaging you would not mind letting us know what is the procedure and what costs, other than these notiare fees, are to be met ?thanks Link to comment Share on other sites More sharing options...
Owens88 Posted January 11, 2009 Author Share Posted January 11, 2009 The gist of what I have found is that :a) Re-mortgaging in France necessitates a notaire's involvement which seems to cost between 2-3% of the loan amount involved, largely a stamp duty on the mortgage contract I believe. e.g. My own lender says it is necessary to do that even just to switch mortgage product - NB No change of ownership, property or listing of those with 'charges' on the property.b) Other than that it is like the British system. Brokers may charge you arrangement fees, so might lenders.c) Life assurance (at a hefty fee) seems to be compulsory. I have given up. Good luck. John Link to comment Share on other sites More sharing options...
Chancer Posted January 11, 2009 Share Posted January 11, 2009 My neighbour has just "remortgaged" his house to buy out his wife, that is to say they are divorcing.The good news is that his new mortgage is only 4.5% fixed for life, however when he adds in the penalty for early redemption of his existing one (which has less than a year to run) the 3% notaire fee, the 2%?? life assurance fee which he neither needs or wants, the banks arrangement fee etc etc it is not at all a cheap loan.They have been handling the dossier for over 2.5 months now and he hopes it will be concluded within a couple of weeks.I didnt have the heart to tell him that until recently (and perhaps even now)in England this could have been arranged over the phone and implemented virtually immediately, however look what that ease of lending has resulted in. Link to comment Share on other sites More sharing options...
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