Understanding the buying process: a step-by-step guide for UK residents purchasing property in France

Do you dream of owning a property in France? Whether it’s a chic Parisian apartment, a charming Provencal villa, or a sprawling estate in the Loire Valley, purchasing property in France is an exciting prospect. However, it’s important to be prepared to make the journey as smooth as possible.

This guide provides a step-by-step overview of the process of buying a French property, ensuring you understand each step from planning to purchase.

Step 1: Planning your French property purchase

It’s always best to start with thorough planning when purchasing a property abroad. Research the French property market, focusing on different regions and their unique characteristics. This will help you pinpoint the location and type of property that align with your lifestyle and budget.

Consider the closeness to amenities, transport links, and the general ambiance of the area. It’s also important to plan around things like employment, schooling, rental demand, and expat communities to ensure you’re laying the foundations for a successful purchase.

It’s important to think about costs as early as possible. Drawing up a rough budget can help you plan with more precision.

Step 2: Getting your finances in order

Now it’s time to set a more detailed budget for your property purchase, factoring in not only the purchase price but also the other possible costs of buying French property. It’s also good to build in a contingency fund of 5% to 10% to cover any unexpected expenses.

If you’re planning to finance your property purchase with a mortgage, it’s essential to understand the mortgage options available to non-residents in France. Now’s the time to speak to a broker and, if possible, get an agreement in principle.

At this point you should also start considering currency exchange. The pound euro exchange rate can fluctuate significantly, which can have a massive impact on your budget. Speaking to Currencies Direct as early as possible gives you the best chance to get a strong exchange rate, as we can monitor the market for you and offer various transfer options.

Step 3: Finding the perfect French property

With your finances in order, it’s time to begin house hunting and find your perfect French property.

Consider employing a reputable estate agent with local expertise. They can provide valuable insights into the market, assist in finding properties that meet your criteria, and help negotiate the best possible deal.

You can, of course, search for properties online as well. Property portals such as Rightmove, French Property Centre, and SeLoger are some of the many options.

If it’s doable, try to visit prospective properties in person. Virtual tours and pictures can only show you so much, and this is the perfect excuse to plan a trip to France!

Step 4: Legal considerations when buying property in France

When purchasing property in France, understanding the legal requirements is essential for a smooth transaction. Engaging the services of a notaire (a public official specialising in legal procedures) is mandatory. The notaire will guide you through the legal process, ensuring compliance with French law.

It’s important to note that property taxes in France vary depending on the location and characteristics of the property. The notaire will calculate these taxes and ensure they are paid in accordance with French law.

Step 5: Making an official offer on a property

Once you’ve found a property that meets your needs and budget, the next step is to make an offer. In France, the asking price is often flexible, so don’t be afraid to negotiate!

When making an offer, it’s crucial to include the purchase price, as well as any additional costs, such as notary and estate agent fees.

The notaire will then draft the compromis de vente (preliminary sales agreement), which is legally binding once signed. This agreement outlines the terms of the sale and sets a completion date.

Upon signing the compromis de vente, you’ll pay a deposit – typically 10% of the purchase price – to the seller. This deposit secures the property and demonstrates your commitment to the purchase.

Step 6: Surveys and inspections

With the preliminary agreement signed, it’s time for surveys and inspections of the property.

In France it’s usually the buyer’s responsibility to arrange, pay for and review the inspections. The seller will need to provide access and information, and your estate agent may be able to offer support and recommendations.

You’ll need to arrange a structural survey with a qualified surveyor (géomètre-expert or expert en bâtiment) as well as a property condition report and energy performance diagnosis from a diagnostiqueur.

It’s also vital to conduct a pest inspection, particularly for termites as they’re common in some regions of France. And for older properties, you should arrange for someone to check for asbestos.

After completing these inspections, review the results carefully and discuss any findings with your real estate agent. If there are any significant issues, you may need to negotiate repairs or adjustments to the purchase price with the seller before moving forward. If you’re satisfied with the results, you can proceed to the next step in the purchasing process.

Step 7: Finalising the property purchase

The final step is the signing of the acte de vente (final sales deed), which officially transfers ownership and is conducted in the presence of your notaire. Ensure all financial obligations, including the balance of the purchase price and associated fees (notaire’s fees, registration fees, and taxes), are all settled prior to this step.

When sending money overseas for a property purchase, it’s also essential to protect yourself from potential fraud. For instance, it’s vital that you check the payee details before making any transactions. Ensure that the account information and the recipient’s identity are verified and legitimate.

Owning a property in France

Beyond the buying process, it’s important to think about the responsibilities of owning a French property.

This includes maintenance, utilities, taxes, and other ongoing costs. Perhaps the property needs renovating or furnishing, and that’s the next step on your journey.

You may want to hire someone to manage the property or let it out on your behalf, or you may start thinking about French visas and residency if you plan on moving to France.

Whatever the purpose of your property, it’s good to plan ahead. It’s also likely that you’ll need to send money overseas – perhaps to transfer pension payments, cover the mortgage, or pay for bills and services in France.

How we can help

Buying property in France can be a complex process, but we’re here to help simplify the money transfer side of things. The earlier you get in touch with us, the easier it is to budget and secure a strong exchange rate. Contact us at mailto:customer.s@currenciesdirect.com or call +44 (0) 20 7847 9400 to see how we can help.