Real Estate & Legal News in France from Propertyshowrooms.com

Taking legal advice 'sensible' before buying French property

Tue, 6 Dec 2011 00:00:00 GMT

Anyone considering purchasing property in France should seek out legal advice from an independent professional with knowledge of the country's market, it has been advised.

This is according to managing director at Leapfrog-properties Niclas Dowlatshahi, who stressed that the differences between French and British laws make this a prudent step.

"If possible, this should be a French notaire (an impartial notary), who is willing to take the time to explain things to you," he stated.

Mr Dowlatshahi added that this is preferable to a UK-based solicitor, as a notaire will have a more in-depth knowledge of regulations regarding real estate transactions in France - and it is this kind of professional who will complete the deal on your behalf.

Recent changes to tax laws in the country relating to wealth and property ownership also need to be considered and understood, he pointed out.

Last month, Tim Harvey from Offshoreonline.org - specialists in European mortgages - highlighted the good availability of home loans for 85 per cent of the real estate asset's value.

He added that it is easier to arrange a mortgage with a high loan-to-value in France than it is in the UK at present.

French property purchase process 'is relatively simple'

Wed, 13 Jul 2011 00:00:00 GMT

Those looking to move from the UK and invest in French property will find that the process for doing so is not complicated.

That is according to Sharon Evans, director of Cle France - property specialists in the north-west of the country - who suggested that some people may feel wary of buying property abroad, especially when the culture is so different.

However, buying a house is relatively easy in France, she said.

"It is a simple system and a system that I think gives the buyer considerable support. It is a safe system, a well-tried and tested system and it is quite simple and quite logical," Ms Evans explained.

The expert added that gazumping is not common in French property purchase as sellers generally stick to their first acceptance.

Leggett recently reported that its website has seen a rise in visitors to its French property pages from around the world, with Americans boosting reader numbers by 52 per cent over 2010.

Property investors in France need to be aware of local risk plans

Fri, 12 Dec 2008 00:00:00 GMT

Local and regional risk plans are being drawn up throughout France to alert owners to potential threats to their property. However, French authorities are failing to make property investors aware of the new plans.

The risk plan - Plan de Prévention des Risques- for an area divides the locality into three planning zones: Red Zone - no planning permission permitted; Blue Zone - planning permission subject to conditions; White Zone - planning permission subject to local planning regulations.

However, it is estimated that less than five per cent of France will fall into a red zone, according to french-property.com.

It is claimed that local officials are drawing up the local risk plans, but Notaires, the lawyers who handle the property transaction on behalf of the buyer and seller, are not making prospective property investors aware of them, reports Property Wire.

"It is quite clear that anyone buying building plots in France should make sure that they have a copy of the risk plan for the area. Unfortunately local officials seem to be ignorant of the rules," said a spokeswoman for the Chambres des Notaires de Paris.

In one case, a couple bought land on a building plot in the village of Marenla in Northern France and received planning permission to build a property without knowing that the plot was in an area at risk of flooding.

The Notaire did not make the couple aware of the risk plan when buying the plot of land. The local planning authority then granted planning permission, despite the existence of the risk plan that made clear the area was at risk from flooding. The couple have since had to abandon their plans.

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Investors 'must be aware of changing French laws'

Thu, 11 Dec 2008 00:00:00 GMT

French officials are failing to advise property investors about the introduction of new risk plans that could affect those looking to make purchases in the country.

Plan de Prevention des Risques - regional and local risk plans - are being prepared across the country but many investors are not being made aware of the potential changes, Property Wire has claimed.

The news source states that the rulings have already had a "catastrophic effect" for one couple, who have had to demolish a property they had begun building in northern France - despite having planning permission - after it emerged that the area is at risk of flooding.

"It is quite clear that anyone buying building plots in France should make sure they have a copy of the risk plan for the area," a spokeswoman for the Chambres des Notaires de Paris told Property Wire.

Foreign currency exchange firm RationalFX recently stated that the current drop in UK interest rates has made purchasing property in France more costly than it was at the start of 2008.

Risk planning zones in France have major implications for property

Wed, 16 Jul 2008 00:00:00 GMT

The French government is creating new planning zones to take into account the possible effects of natural disasters which have major implications for developers and property owners...

French property market "sheltered"

Fri, 10 Aug 2007 00:00:00 GMT

Experts assert that the French property market is by and large sheltered from the current US sub-prime crisis due to a stringent legal framework that will not allow sub-prime risks to penetrate.

Serge Grzybowski, chief executive of property development group Icade, argues that France is protected from this vulnerability as a result of the way in which its mortage system is set up, with banks tending not to lend excessively to mortgage borrowers.

In the US a combination of uncapped floating rate loans and relatively high lending in relation to disposable income leaves many borrowers susceptible to base rate fluctuations.

"Floating-rate loans are often capped in France and banks don't lend more than 33 per cent of an individual's disposable income," explained Mr Grzybowski to the French press, according to Forbes.

He continued to state that French property groups tend to have little exposure to "the more speculative property markets" or foreign property markets.

A spokesperson for Association Integration Kreizh Briezh maintains that UK property investors with an eye on the French market would stand to benefit from French language classes in order to make the process and transition easier.

Property buyers urged to seek legal advice

Wed, 25 Jul 2007 00:00:00 GMT

Investors considering the purchase of a retirement home should seek legal advice first, an expert has said.

Heyday director Alisa Ogilvie was commenting on the difference in inheritance laws in France and the UK as recent figures from the Institute for Public Policy Research estimated that one in five British pensioners will retire overseas by 2050.

Around 20 to 30 per cent of the total cost of health care is likely to have to be covered in France but those who are not yet pensioners or working in France could be charged the full amount.

"To try and avoid any pitfalls when purchasing a home people should obtain appropriate legal advice," Ms Ogilvie commented.

With French inheritance laws applying to any property bought in the country, buyers are advised to write a well in French as their English one may not be recognised, she added.

Early this month, a Property Frontiers spokesperson claimed that increased airline accessibility to French locations, such as Limoges, has boosted the country's popularity among British property investors.

French property market may be boosted by new IHT laws

Thu, 14 Jun 2007 00:00:00 GMT

Investors purchasing property in the French market may be set to benefit from proposed changes to the country's inheritance tax (IHT) laws put forward by new president Nicholas Sarkozy, it has been claimed.

According to WorldofProperty.co.uk, Mr Sarkozy hinted that any changes that he introduces will look to ensure that most people will not have to pay IHT on their properties, meaning beneficiaries of investors will not be saddled with large bills.

Niclas Dowlatshahi, managing director of Leapfrog Properties Europe, suggested that this could boost the country's property market as investors look to capitalise upon these favourable tax conditions.

"The French property market is notoriously safe and if this change happens it will also offer an excellent tax break," he remarked.

Trisha Mason, managing director of VEF, recently said that under the new president, France's property market would become "livelier" if he decides to lower IHT and remove other administrative burdens.