View from the Foothills of France

Some personal views on living, working,
bringing up family and making the dream happen in the most beautiful region of France. View from the Foothills of France also includes some personal and professional thoughts and tips on finding and buying the perfect property in the Ariège and Haute Garonne regions.

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The enduring popularity of the French farmhouse

By nadia, on 31st March 2014

P1120831

According to the latest Savills research in the UK, “buyers are feeling more positive about renovating houses and are again on the look out for big projects to do”. Couples in their forties are apparently the biggest spenders, and 82 per cent of them are keen to take on work in order to create their dream home and add value to a property.

The survey, which ranked popular house types in order of preference, also showed that the farmhouse has outstripped the manor house and the cottage to take the number one spot as Britain’s most desired type of property.

According to the report, “farmhouses have a comforting feel, they offer better value and more space with lots of potential to use the outbuildings as offices or holiday lets. Everyone wants a big farmhouse kitchen and a home which is flexible, informal and comfortable.”

Which makes me think that the French property market is about to experience a housing boom or certainly in this part of the Midi-Pyrénées where we have more than our fair share of lovely, stone farmhouses with outbuildings, many of which would make fantastic renovation projects. There was a drift away from these in the last few years with buyers looking for smaller, renovated village properties but it appears that certainly the British love affair with stone farmhouses is far from over.

These are the figures which came out of the report:

 

The Farmhouse

  • Desired by 27% of buyers
  • Believed by 12% to offer growth in next five years
  • 54% think it has most potential to add value
  • The informality, the stone flagged floors, the jumble of barns and stables, the sense of working history, all make the farmhouse number one
  • It offers better value than a manor house, especially a renovation
  • Renovating means the chance to incorporate modern luxury within original features and character.

In the UK the average price of a farmhouse is between £500,000 and £2 million. Here is the foothills, a farmhouse for renovation starts at around the 100,000 Euros mark, and what’s more, you are likely to get substantially more land and woodland, you might well get mountain views, planning permission to convert outbuildings will be easier to obtain and you will get a great deal more sunshine. I know where I would choose to buy my farmhouse….

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French house buying guide

By nadia, on 4th March 2014
Stunning Chateau currently for sale Haute Garonne

Spring has arrived in the Haute Garonne                         Chateau, 4,068m Euros

1.Making An Offer

Once the seller has accepted your offer on a property, the agent or your property finder will contact the Notaire to arrange for the first contract to be drawn up. Notaires are public officers in France, appointed by the Minister of Justice and, as such they are invested with a delegation of public power. The use of a Notaire is required to conclude a marriage contract, conduct real estate sales (due to the Land Registry), make a will, etc. The rules of ethics applicable to the Notaire mean they can act alone to represent two parties in a single act, such as the seller and the buyer of a property. However, either party may request their own Notaire, without increasing the cost of the operation: in fact, the notarial fee is essentially based on the act, so that if two Notaires are involved in the implementation of a sale or a mortgage loan, the fee is the same as if there had been one Notaire and will simply be divided between them. However, more often than not the seller and buyer will use the same Notaire for speed and ease.

2.The Compromis de Vente (Or Sous Seing Privé)

The Compromis de Vente or Sous-Seing Privé sets out the terms and conditions of the purchase and manages the schedule of the sale. Both parties become tied into the purchase of the property subject to various conditions – “Clause Suspensive” – that have to be met prior to completion, such as obtaining a mortgage, etc.  Once the conditions are met then the sale will occur.  If the conditions are not met, both parties become free of the engagement and the deposit is returned to the purchaser,

3.Seven-Day Cooling-Off Period

There is a seven-day cooling-off period after first contract stage, the signing of the Compromis. This starts on the day following signature of the contract if this is carried out in the presence of the Notaire in France.  If you are signing by power of attorney then the seven-day cooling off period starts the day after you sign for the recorded delivery containing the contract.  At any point during the seven-day cooling off period you are able to withdraw from the purchase without providing a reason and your deposit must be returned within 21 days of the date of the withdrawal.  The vendor does not benefit from a cooling-off period.  The deposit can be up to 10% of the purchase price and should be paid direct to the Notaire.

4.Surveys/Expertises

In order to do draw up the Compromis or Sous-Seing Privé  the Notaire must first have in his possession the obligatory surveys, all of which are at the charge and responsibility of the seller and for the information of the buyer. These surveys are:

lead/termites/asbestos/thermal efficiency/electricity & gas/drainage

General surveys are not common in France. The property is purchased in the condition that it is in on the date of completion. If the buyer requires a survey then this should be carried out before the end of the cooling-off period.  With the agreement of the vendor, it is possible to include a survey as a Condition Suspensive but this needs to be worded carefully in order to ensure that the buyer is protected if the results are unsatisfactory.  A general clause, subject to survey, would not be sufficient.

5.The Intermediate Stage

This follows the seven-day cooling off period and usually takes around three months. During this time the Notaire and his staff will carry out the various checks and searches and inform the necessary bodies of the potential sale.  During this period mortgages are also usually completed and issued.

The buyers’ responsibility at this stage is to provide the Notaire with any outstanding paperwork, such as birth and marriage certificates.  It is also the buyers’ responsibility to ensure the final balance is deposited in the Notaire’s account in time for the final Acte de Vente.

The sellers’ responsibility at this stage is to provide the Notaire with any outstanding paperwork, such as guarantees for any work on the property by registered artisans, as well as any invoices they may have that can be used against their capital gain – where applicable.

6.Final Stage, the Acte de Vente

The final stage is the signing of the Acte Authenique or Acte de Vente.  Funds need to be transferred to the Notaire’s account by the time of the signing and so it is advisable to arrange for this to occur allowing some leeway.  The seller should visit the property before the final signing.

The Acte Authenique is carried out by the Notaire with all parties present – unless a power of attorney has previously been established.  The Acte Authenique contains all of the information present in the Compromis de Vente as well as mention of all the notarial checks that have been carried out.

If the property is mortgaged then the mortgage will be paid off from the funds by the Notaire and the balance returned to the seller. If the buyer is purchasing with a mortgage, then this too is administered by the Notaire and will incur a further fee – calculated by the Notaire at the time of the Compromis de Vente.

Declarations will be made to the tax authorities by the Notaire.

Possession generally takes place immediately following the signature of the Authentique. If there is any delay with the seller’s moving, then there will be a clause in the Acte Authenique with a specified moving date and a daily penalty clause (clause d’astreinte) in order to ensure this date is adhered to.

 

Costs and Fees

Agency fees

Agency fees in France vary depending on the value of the property, but are generally around 6% and should be included within the advertised price – frais d’agence compris (FAI) but this is not always the case.

Notarial fees

These are around 6.5% of the purchase price but are not included in the advertised price.  These are in addition to the advertised price.

Mortgage fees

These are calculated on a fixed scale and are around 0.5 – 1% of the mortgage value. The Notaire will advise you of the approximate figure during the signing of the compromis de vente

VAT or TVA

This is payable by the vendor on any property that is under construction or that is less than five years old.

 

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Reasons to (and not to) move to France (the foothills)

By nadia, on 12th February 2014

1. Front of house other

Reasons To

  • Better quality of life (of course this depends on your definition of quality but, generally I would say that the French have their priorities right when it comes to lifestyle choices)
  • Healthier lifestyle
  • Unspoiled natural environment
  • Fewer people, more space, uncrowded roads, no traffic jams
  • Greater environmental awareness and responsibility
  • Beautiful countryside, stunning scenery and mountain views
  • Skiing and a huge number of activities on the doorstep
  • Fabulous and varied climate
  • Safe environment
  • Paradise for children with lots of freedom
  • Politically stable (despite prevalence of two-timing presidents)
  • Clean, unpolluted rivers
  • Fantastic hunting, shooting and fishing if that’s your bag
  • Stunning old stone houses and beautiful, classic French architecture
  • The health service is as impressive as everyone says plus f you are a hypochondriac, you will fit right in
  • Sense of tradition and identity
  • Strong family values
  • High quality and delicious food and wine with abundant local, seasonal, organic fresh food and wonderful local markets
  • Fracking is banned
  • Shopping is not considered a leisure activity
  • Business opportunities (auto-entrepreneur status has opened the market and there is little competition – marketing has yet to reach much of rural France!)

 

Reasons Not To

  • If you are running away from a bad situation at home – it will still be a bad situation in another country
  • If you are determined to believe the stereotypes about the French being rude and arrogant. In reality, they are generally friendly and welcoming but you are a stranger in their country and must expect to do things their way even if you don’t like it – and you might even get to like it
  • If you’re not prepared to learn the language
  • If you expect American style, in-your-face service – they do things differently in France
  • If you don’t want to embrace French culture – both the upsides and downsides
  • If you are not patient enough to build proper relationships with the locals
  • If you want or expect German style efficiency rather than a more latin, laid-back attitude
  • If you expect anything to be open on Sundays (except boulangeries of course!)
  • If you are always in a hurry (to be ‘pressé’ can be used as a form of insult in France)
  • If you watch lots of television – French television is terrible (but French cinema films are excellent)
  • If you like flash cars and a bling lifestyle
  • If you can’t live without your takeaway curry or chinese meal (you can get a pizza!)
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Changes to inheritance laws for French property owners

By nadia, on 23rd January 2014

Children in teepee

For anyone already owning or looking to buy property in France in the next year, there are some interesting and hopefully advantageous changes coming into operation in 2015 which will change the laws that govern current French inheritance applying to foreign home owners in France.

Under current French law, French property is subject to French forced-heirship law, which in practice means the French legal system will decide who receives your property when you die (there are ways around this of course but not guaranteed). This means that your current foreign Will is probably (at least partly) ineffective if it conflicts with the French forced-heirship rules.

However, from August 2015, European inheritance rules are set to change which will have an important and beneficial impact for foreign owners of properties in France (whether permanent residents or holiday home owners). Under the Regulation, after 17th August 2015, any foreigner (this is to be confirmed but  currently the law as it stands applies to all foreigners) who has property in France, can choose either the law of the country of their habitual residence, or the law of their nationality to govern the devolution of their French estate. This ability to nominate which law applies to your estate means that forced heirship provisions will no longer apply.

Having said that, the new rules will only benefit those foreign home owners who have taken the appropriate action which is to make a Will which is valid in France stating which law will apply to their property. This could be done in a French Will or, because in France English Wills (as long as properly drafted) are valid, the nomination can be done in your English Will. Moreover, it can be done now in preparation for the 2015 changes (owners of French property must also be mindful that any nomination made now will have no effect until 2015, which means you need to consider what will happen if you die in the next two years.) If no such Will is made, then the succession of your estate will be governed by the state of your habitual residence.

For the moment, the UK, Ireland and Denmark have all opted out of the new regulation but this does not make much difference because the opt-out simply means that it is not possible to make an election under ‘British’ law for ‘foreign’ law to apply in Britain to British assets, but it does not mean that Britons (or Danes) cannot make an election under the laws of participating EU States.

This article is for guidance only – I am not a lawyer so please take specialist legal advice on all of the above before making any decisions. I work with some excellent lawyers in the UK and France should you need a referral.

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