Buying property in France can be a daunting prospect for
some as the process is so different from the UK or Ireland.
To help you we have compiled six top tips to help you from
your property search right through to viewings and the
final sale. These tips should help you not only be more
efficient and more enjoyable but also give you an
understanding of what your property purchase in France
entails.
1) Spend a few days- its worth it!
If you are serious about your purchase in France then you
have to spend at least a few days if not a week or more in
the area in order to get a really good feel for your
surroundings but also to see enough property in order to
make the trip worthwhile. A longer trip will also stop you
from making rash decisions about a property purchase simply
because you are short on time and desperate to get your
foothold in France. Viewing trips over a long weekend are
often not enough and add to that that agencies are shut on
Sundays are also often on Mondays and it can mean that you
really won't see enough options to be able to make a
sensible decision. The best advice is to spend a good week
to ten days in your chosen location with 5 or six days put
aside for viewings and a further few days to do your own
research if you find something suitable. These extra days
will allow you to send in a local builder to check the
structure of the property and to give you quotes on any
work that is required. It will also give you the chance to
pop into the local mayor's office where you gather
information such as any planning permission granted in the
area so you can see how it might affect your property- if
at all. This is especially important if you plan on asking
for an extension to your property as you will need to get
to know the local authorities quite well and keep them on
your side. If renovating or building new these extra days
can also wisely be spent with a local architect so that he
can give you advice on what can and cannot be done and
possible costs. All these checks are well worth doing
before you return to the UK and ideally before you make an
offer on the property as it will give you a much clearer
idea of what you can do with the property and its value to
you.
2) Don't be afraid to negotiate
Most people are unsure whether they can negotiate in France
and if so how much. The short answer to this is YES and you
can normally negotiate between 5 to 10% off the price
depending on the state of the market. As I write this we
are seeing offers of up to 10% off being accepted by the
vendor because the market in France is currently a bit slow
in certain areas so now is in fact a great time to go
property hunting with great deals to had. Help and advice
when negotiating on price is in fact one of the many areas
where Leapfrog properties can help its clients.
3) Get a survey/structural appraisal
The process of sending in a surveyor to check the structure
of the property and to give you a report as you would
expect in England is extremely uncommon in France. There
are a few French surveyors but most are based in Paris and
focus purely on commercial property. You are therefore left
with 3 choices: do nothing, pick an English surveyor who
has moved to France or do what the French do themselves
which is ask for an appraisal of the property by the local
builder or architect. The last option is most recommended
as it is prudent to get a professional's opinion before you
make an offer whilst the time it takes to get one of the
handful of British surveyors to see your property it could
have already been sold. However if it is more a question of
peace of mind as supposed to bargaining power then you can
sign an initial sales contract subject to a survey being
done by the surveyor of your choice. If the survey comes
back reporting defects to the extent that you do not wish
to go ahead with the purchase then you can withdraw with no
penalty.
4) Don't be afraid of signing the initial sales contract
The "compromis de vente" (initial sales contract) is
designed to protect both the buyer and vendor. If you make
an offer on a property and the agent very soon after asks
you to sign a compromis de vente this isn't because he/she
is a pressure salesman it is simply because that is the way
things are done in France. Once this document is signed by
both the buyer and the vendor there is effectively no more
room for negotiation and the property will be taken off the
market while all the necessary checks are performed by the
appointed notaire. This is in stark contrast to the process
in the UK where an offer can be accepted by a vendor and
then gazumped a few weeks later by someone with a better
offer. In the UK you send in your surveyor after an offer
has been accepted and then following the report you then
have further room for negotiation up until exchange of
contracts. This is not the case in France as you cannot be
gazumped if both signatures are on the sales contract which
is why we recommend you have a few days spare while on your
viewing trip to perform any checks/appraisals. Equally if
you like a property there is no point going back to the UK
before you make an offer as the property is often with 4/5
other agents and could easily be sold, plus the time it
takes for the paperwork and contracts to be signed by both
parties if you are in another country could also allow
another buyer to step in. There is a seven day cooling off
period during which you can pull out of the purchase for
any reason whatsoever without penalty so if it is simply a
question of wanting a bit more time to decide then you are
better off signing the contract to prevent losing the
property and if possible get the vendor's signature on it
at the same time.
5) Get your mortgage agreed before your trip to France
If you require a mortgage your bargaining position and
having a good idea what you can really afford is largely
improved by getting a mortgage agreed in principle before
you leave. This way when you make an offer you really know
if this is over-stretching yourself or not and prevents
disappointment later if your bank then decides that the
risk is too great and they cannot lend you the required
funds. This can not only be frustrating but also waste time
for everyone involved. It is a good idea therefore to go
with a company that has the system already in place to deal
with arranging you a mortgage and answering your questions
on finance. Typical repayment mortgages are currently
around 3.5% and finance for resale properties can easily be
arranged up to 70% while finance for New build/leaseback
properties can often be as high as 95% due to the high
demand and ease of rental of new build properties in France.
6) Use a currency specialist
When sending money from the UK to France there is lots of
money to be made or lost depending on how you do it and
with whom. If you simply ask your high street bank to send
your money to a French bank account in Euros they will not
only charge you a transaction charge but are also likely to
give you rather uncompetitive rates on exchange. You may
also lose money on exchange rate fluctuations adversely
affecting the strength of the pound to the Euro. To avoid
any of these negative affects and charges it is best to use
a currency specialist who not only offers the most
competitive rates on exchange but also doesn't charge
commission on the money sent. They will also offer you the
possibility to buy your currency in advance of the
completion date which is often 3 months after the signing
of the initial contract and much more if buying off plan.
This will ensure that you know exactly how many British
pounds you will be spending up to 2 years in advance
instead of playing the risky currency game which could end
up costing thousands.
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Leapfrog Properties are agents specilasing on Property
sales in France and Niclas Dowlatshahi is the Managing
Director. Visit http://www.leapfrog-properties.com to see
how we can help.
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