Buying in France with MGM

Purchase process

At MGM we are passionate about the French Alps - its culture, its history and its traditions. Whatever your reasons for considering buying your own property in France, we can help you make your dreams come true. Our expertise is unique and our dedication unequalled.
Purchasing any property is always an exciting step but also, of course, a serious financial commitment. It requires a sound understanding of the property market, the time to search for the perfect place and solid advice from people you can trust.
When the property is abroad, extra complications can arise. There is often a language barrier, limited local knowledge, cultural differences and of course a unique legal system to contend with.
When you purchase through MGM French properties, you can relax. We have over 10 years of experience helping people realise their dreams of owning a luxury property in France.
 

Price and purchase costs

The price

All of MGM's properties are sold fully finished. This means that they come complete with fully fitted kitchens* including appliances, fitted bathrooms, floor and wall tiles and paint or other specified finish to all other surfaces (according to the technical specifications of the building).
The price you are quoted is not subject to any additional costs (unless you wanted to make changes to the plans or specifications).
*Properties sold under the Leaseback Scheme are sold fully fitted, equipped, but also furnished and decorated.

The French notary fees & stamp duty

These will be approximately 2.5 % of the purchase price for new property, as opposed to 6/7 % for resales.

UK Based Solicitors/Notaires

Some clients choose to use a UK based solicitor in addition to the French Notaire to help guide them through the purchase process. Their role is purely to advise and inform as it is only the notaire that can undertake the conveyancing. Fees vary depending on the solicitor and the nature of his involvement. Expect to pay from £1,000 to £2,500 for a purchase price in the region of £250,000.

Mortgage fees

If a mortgage is raised on the property in France it would have to be through a French bank, in which case there is a tax of approximately 2% of the mortgage amount. Funds raised on UK properties via mortgages from UK banks will be treated as straight cash payments.
 

Renting your property

There are three main options available:

1. Private rentals (short or long term)

This option requires time and personal involvement. Consideration should be given to how the property would be marketed, cleaned and maintained as well as who would be responsible for handing over the keys and checking the inventory.

2. Rentals through a local agent (short or long term)

This solution is far more realistic and very often chosen. The French agent's fees vary according to the work required by the client (research of tenants, cleaning, inventories, linen supply etc). An average fee for full management for short term letting is in the region of 25% of the gross rental income.

3. Leaseback scheme

Whichever option you choose the rental income has to be declared to the French tax authorities. In most situations, the rental income is not taxed as many charges can be offset (mortgage interest, local taxes, service charges, managing agent fees, etc).
 

Finance

Once you have chosen the dream property for you, all that remains is the financing. There are all kinds of options including financing from the UK through equity release which would be deemed a cash buy or the most popular option which is to finance using a French loan.
Just like here there are many different mortgage options available in France including fixed and variable rate. This method is good if you do not wish to re-mortgage your home and are thinking of letting out the property in your absence. The rental income you receive will, of course, be in Euros, making it easier to calculate your mortgage repayments. To obtain a French mortgage, you would need a minimum of 20% deposit.
We are in contact with several French banks specializing in property mortgages and if you wish we can help you to set it all up.
Once you have chosen the dream property for you, all that remains is the financing. There are all kinds of options including financing from the UK through equity release which would be deemed a cash buy or the most popular option which is to finance using a French loan.Just like here there are many different mortgage options available in France including fixed and variable rate. This method is good if you do not wish to re-mortgage your home and are thinking of letting out the property in your absence. The rental income you receive will, of course, be in Euros, making it easier to calculate your mortgage repayments. To obtain a French mortgage, you would need a minimum of 20% deposit.
We are in contact with several French banks specializing in property mortgages and if you wish we can help you to set it all up.


Legal assistance

In France the legal side of a property transaction is carried out by a public notary, these perform the role of solicitors in the UK with the main difference being that the "notaire" would normally act for both the vendor and the purchaser with fees set down by the government. This reduces the amount of legal correspondence speeding up the whole process.
It is possible to use the services of a UK based solicitor specialising in French conveyancing in addition to the French notaire. Fees vary depending on the solicitor and the nature of his involvement.
 

Currency exchange

Fluctuating exchange rates can have quite an effect on the price of an apartment, it is therefore of paramount importance that you are looked after in this respect and make sure that you are getting the most competitive rates out there, this can save considerable amounts of money.
MGM recommend foreign exchange companies based in the UK, they can save you 2-3% compared with the high street banks so it is definitely worth the effort of picking up the phone.
An MGM consultant will happily give you the contact details at the point of reserving a property.
Recherche en cours...