Firstly, an agent was found saying that you need to be aware that the LTV (or loan to value) available on a French Property 2nd home is significantly lower than you would be used to in the UK where there is a lot of flexibility on properties for sale.
For instance, most mortgage agents will only advance up to 75% of the property value -in the UK it is possible to achieve an advance of up to 95% on your home purchase! That means, if you want to buy a £100,000 property, then you need to be able to place a deposit of £25,000! Any agent would guide you to that as there are plenty of properties for sale in France.
Secondly, the cost of purchasing properties for sale (assume 11%) will require more upfront cash – as this cost cannot be added to your mortgage. Refer to this website guide, for further information on agents in France and on all agents throughout the world.
Lastly, your residential status will affect where you can borrow money (i.e. if you remain UK resident then you can borrow money from UK banks offshore branches – but this is not available to French residents). Then you have to figure out how to get the purchase money from Sterling to Euros – and whether you want a sterling based mortgage or a euro based mortgage.
For instance, as a realistic guide, if you are paid in Sterling and use this money to fund your French Property mortgage – then you might want the mortgage denominated in pounds. Otherwise, if the currency moves against you a Euro mortgage, whilst remaining the same in Euros, could become more expensive to fund with Sterling.
Lastly, Estate Agents will tell you that even if you do not take out a real mortgage, most people with a Real Estate Property (even if they decide to only visit it occasionally and live in another country) will open a separate French bank account to pay taxes and local bills. An agent will be able to guide you on this issue.
Language is also an issue when it comes to negotiation and it is very important to get the right agent to advise you on the right properties for sale.
For further information visit our site and go to the links and click on International Real Estate. This will assist you as a guide to searching for the right properties for sale rather than to entirely on an agent.
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