Mortgages

[Jenny B]

HI

we are coming over to france in august, hopefully to buy a property, this is subject to us selling our home in the UK, we have heard we should get a decision in principle beforehand does anyone recommend to do this? and if so where should we go to do this as we intend to up sticks and move!

Also I am very confused (doesn't take much) about taxes and all the legalities has anyone got a dumbed down version of what we can expect fees wise during the sales process and general living taxes once we move here

Appreciate any and all suggestions

 

[Nick Trollope]

Hello

I'm not sure I understand the question. It is normal (if it is the case) to add a "clause suspensive" to the Compromis de Vente, the document you sign when you agree to buy a house (please excuse me if I am being too simplistic), that allows you to get out of the deal without penalty, if you fail to sell your UK house. The Notaire or Agent you use will explain this to you. If you fail to include this clause and don't sell your house & can't complete, you will lose your 10% deposit (At least. You could also be sued by the Agent for his fees).

Or are you referring to a descision in principal on a mortgage (in France)? These are available, but not as guaranteed as UK ones. Again, mortgage availability is a normal clause in a C de V.

As regards taxes (as in purchase taxes) allow a maximum of 15% on top of the purchase price ("prix net Vendeur" and unless the price includes any, or all, of the fees!!). "Ownership" or "habitation" taxes (likened to Council Tax in the UK) vary wildly across the country & are (around here at least) on a par with the UK.

Lots more info on this subject on this forum, press the "search" button... If you can make it work, which lots can't!!

 

[Will]

If you can get a decision in principle sorted out before you start looking that's great. Otherwise, talk to the agents before you start looking at houses, because that will influence what price range you should be looking at. There is a big difference between French and English mortgages as whereas in England the mortgage is secured on the value of the house, in France it is your ability to pay that is the important thing to lenders, so your income is most important. French lenders tend on the whole to lend lower percentages with repayments over a shorter term. But do talk to the agents about this, they have contacts who can usually fix things for you.

What Nick says about clauses suspensives is right, but we are finding that some notaires and some sellers are currently refusing to include these, having been messed about by so many time-wasters using this as an excuse to get out of contracts. However, it is a buyers' market at present.

[makeiteasy]

Dear Jenny,

if you want i could help you to know if you could get a mortgage in France and what is the maximum you'll be able to borrow regarding your income, because i'm a french credit broker.

So don't hesitate to contact me if you need and i'll be very please to help you and anyone who's in the same situation

Céline