Coast and Country in France

Long term rentals are controlled by rules and legilation.

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Hi

We have a house in France (South Vendee) that we have owned for 4 years now. My husband has recently changed jobs and we are struggling to get to use the house as much as we usually do and are thinking about renting it out for a couple of years or so.

The last thing we want to do is sell the house as we hope, in the not too distant future, that we can go back to the way we were and be able to make regular visits to stay at our house once again.

We have been thinking about renting it as an option - rather than selling it then having to start looking for a new one all over again in a couple of years! That way the house gets regular use and stays warm in winter and aired in summer and we still have our investment to return to once our circumstances change.

Do you have any ideas or help regarding how we go about this? I understand, from one of our French neighbours, that in France they tend to rent on “long term contracts” for around 2 to 3 years? This would be perfect for us.

Any help, advice or info you can offer us would be appreciated.

Thanks

Alison & Colin

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Hi

You are legally obliged to give a nine year lease with breaks of 3 and 6 years for renewal - the tenant has an automatic right to renew, you can only ask for possession if you wish to sell or use for your own full time occupation -but this can take a long time if the tenant does not agree.

The tenant can give three months notice at any time. It is difficult for you to give notice in the winter or if the tenant has children.

A six month furnished rental is an option, this is not so severe - or vacation rentals are more popular if you wish to use the property yourself in the future. Vacation rentals need good support and local management - you can get information about holiday letting from my website at http://www.allrentalsfrance.com

Let me know how you get on or if you would like to advertise,all my advertising services for vacation owners are free.

Best wishes

Tony

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Hi Tony

Wow - thanks for the quick reply!

Not quite as straight forward as I thought.

Definitely something to think about.

Will get back to you if we need any further help / info.

Once again thanks for the reply

Regards Alison

Business in France, French life, living in france, Personal, Property rentals, Real Estate, Rentals

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Where do you find good people to do work, supervise and how much should they charge.

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Good Evening Tony,

I have just visited your web site and read some of the issues etc. I wonder if you could assist with some advice?

My wife and I have been looking at buying a property in France. We have seen a partially renovated property (New Roof and Septic Tank) and are very intrerested in buying. The work has been carried out by French trades to a very good standard.

The property is in the south of Normandy

I wish to employ an architect/project manager to finish the rest of the renovation using French trades.

What is the best way to select this person?

What are the average rates for renovation work?

Are there any price guides available?

Many Thanks

John

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Hello John,

Thank you for using my sites and for writing to me.

By having work done by registered French craftsmen you will benefit from their full insurance and indemnity - when you buy a property be sure to get the original invoices for any work done in the preceding ten years.

Finding good workers, architects or a “maitre d’ouvrage” is likely to be a very localised thing and best done by personal recommendation - ask at the local Mairie - they will know all registered artizans and are likely to be “cautious” in only recommending people they know. You can also look at local newspapers and local Internet magazines - be sure to only to consider a correctly registered company or person - ask for their “numero Siret” or even their “kbis” which allows you to see any local judgements or problems they have had registered against them.

To find the “going rate for the job” you can buy and access information from this blog post I wrote
http://www.twiku.com/2008/01/12/building-and-construction-costs-in-france/

These are “official” rates - the sort of costing the government will pay - in most cases a local builder will be much more competitive, but it gives you a bench-mark.

I have written about this a few times in my blog including
http://www.twiku.com/2007/09/05/cost-of-renovations-in-france/

Let me know how you get on
Best wishes

Tony

Building in France, Business in France, coast country france, French life, fruk, living in france, Personal, Real Estate

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Capital gains Tax (CGT) on the sale of a property in France for any house which is not a principal home  starts at 16 percent up to 33 percent for non-EEC residents.

It reduces by 10 percent a year after the fith year of ownership and can be zero after 15 full years of ownership.

The costs of purchase and any major building or alterations can be deducted from the capital gains only if these are done by approved, certified French registered builders against validated and approved invoices.

The Notaire involved in the sale of a proeprty is legally resoponsible for investigating and approving all these bills.

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Dear Sir

My wife and I bought a Longere seven years ago for approx 20,000.euros which required complete renovation.

We proceeded to hire French registered builders and put in new walls,new floors,septic tank new roof and complete grounds.

The total cost for the renovation is approx 200,000 Euros and we are now intending to sell at about 250,000 Euros. Can we offset the renovation costs against any Capital Gains Tax if we are liable for this tax. We are retired and live in the U.K.

Many Thanks

Brian

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Dear Brian

If you have correctly receipted bills from the registered French builders and if this is for major construction and significant alterations (not repairs or decoration), then these bills can be allowed against Capital gains Taxes.

On the figures you give me, with the permitted allowances and costs, you should have very little to pay in CGT - it may be advisable to meet and talk to the Notaire you are considering using for the sale - their advice should be impartial and for this will be free.

Hope this helps

Bonne Chance

Tony

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Dear Tony

Many thanks for your prompt and informative reply, We will as you advise speak with a notaire when we proceed with the sale.

Regards

Brian

Building in France, Business in France, coast country france, French life, fruk, living in france, Personal, Real Estate

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It is a pleasure hearing from regular readers and helping with questions over a period of time, I am glad some of the links and comments from others in the archives of these notes since 1997 have been useful - I just had this mail form a reader who contacted me a year ago about another matter…

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April 2007
Hi Tony
Long time no see, how are you? Question.Very roughly do you have a fig. for the cost per sq. meter for a new house build here in Fance not including land costs? Not self build.I have been unable to find a website that could assist me with this info.

Nice to see you back on line.
Ted

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Hi Ted,

We are all well and happy - hope you are the same.

Building a home on land which has services connected will cost from 1000 to 2500 euro per square meter, depending on the standard of finish - the sky is the limit of course, but for a good home, fully tiled and finished I would cost something at 1500 euro per square meter - this would not include an expensive fitted kitchen or gold plated bathroom fittings, but would be to a high standard.

So a nice villa of 130 square meters would cost 195,000 euro - you can supervise the work yourself and employ contractors direct - this could save up to 25 percent of the costs, but you need to be on site all the time - if you have a trade, masonry, plumbing, tiling, carpentry etc - you could invest your time into a project yourself.

Getting a good team or reliable overseer can be tricky - always take up references and inspect previous works done including talking to their clients.

Hope this helps

Tony

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February 2008
Hi Tony.

Long time since we were in contact remember we lived in Tremolat.Well since then we decided to sell up and go and live in the HauteSavoie. We have initialy rented a place and signed the promise to buy on a nice house.

HOWEVER we have by accident found out that the driveway to the house is commune land and therefore we cant fence it etc etc.We now know that the agent also knew but did not disclose this to us. We have talked to the Mayor and our Notaire.We still wish to purchase regardless, however we would like to know our rights about non disclosure of informatiom.Do you think we should look for some sort of financial retribution? Any words of wisdom?

Hope you and your family are keeping well

Ted and Jeannie

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Hi Ted,

The seller and their agents are legally obliged to inform you of anything detrimental about a property that they know about or should have known about. If they do not do this the contract can be cancelled by you and you can claim any losses.

It is very likely that this “servitude” would have become clear to the Notaire and explained to you on the final sales acte, before you paid, and this then would be your option to continue.

I am not sure what you mean by “commune” land - it will belong to someone (or the Mairie) and it must be clear as to the rights of way and the extent of responsibility for repairs etc.

If the access to the property is good and clear and there are no problems and if you like the property and consider it good value, then go ahead - perhaps make a reduced offer - only you can decide on this.

Taking any “legal” action is likely to take many years and much money for no conclusive result (in my opinion and experience)

Bonne Chance

Tony

Building in France, Business in France, Discover France, French life, fruk, living in france, Personal, Real Estate

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Let the buyer beware is often quoted as a general rule for property sales in France, but the seller has legal obligations.

When you buy a property in France, it is a legal responsibility for the seller and their agents to inform you of anything they know may be wrong or detrimental about the property - and also anything they should be aware of - note the word “should” - this could be difficult to”prove” if there was a later claim for misrepresentation. Taking action for compensation is likely to be a long and expensive process and, in my opinion, should be avoided at all costs.

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Hi Tony

Ted here, long time since we were in contact remember we lived in Tremolat.Well since then we decided to sell up and go and live in the Haute Savoie. We have initialy rented a place and signed the promise to buy on a nice house

However, we have by accident found out that the driveway to the house is commune land and therefore we cant fence it etc etc.We now know that the agent also knew but did not disclose this to us

We have talked to the Mayor and our Notaire.We still wish to purchase regardless however we would like to know our rights about non disclosure of informatiom.Do you think we should look for some sort of financial retribution?Any words of wisdom?

Hope you and your family are keeping well
Ted

==

Hi Ted,

The seller and their agents are legally obliged to inform you of anything detrimental about a property that they know about or should have known about. If they do not do this the contract can be cancelled by you and you can claim any losses.

It is very likely that this right of way or “servitude” would have become clear to the Notaire and explained to you on the final sales acte, before you paid, and this then would be your option to continue.

I am not sure what you mean by “commune” land - it will belong to someone and it must be clear as to the rights of way and the extent of responsibility for repairs etc.

If the access to the property is good and clear and there are no problems and if you like the property and consider it good value, then go ahead - perhaps make a reduced offer - only you can decide on this.

Taking any “legal” action is likely to take many years and much money for no conclusive result (in my opinion and experience)

Bonne Chance

Tony

caveat emptor, caveat vendor, living in france, Personal, Property in France, Real Estate

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When we first came to live in the South of France in Languedoc, most villages had a lot of old properties which had been abandoned for generations and which some enterprising people bought up cheaply and renovated into holiday homes.

All property prices have increased considerably over the last twenty years and it is very rare now to find a sound property in need of renovation in attractive villages. There are some remote areas and absolute ruins which are offered but attractive, convenient and inexpensive are as rare as horse feathers.

I know of one good opportunity where a complete three story, corner plot, village house with courtyard/garden and original features like Languedocien fireplace and stone sink are still in place and the whole property can be bought for a quick sale price of 33.000 euro. The house has water and electricity and original medieval stone windows. It is comfortable (65 square meters) but complete and in need of some TLC.

There are details on my site at france_properties/medieval house to renovateThere is a genuine reason for a quick sale, contact me if you are interested, or pass this on to a friend who may be.

Building in France, Business in France, Discover France, French life, fruk, living in france, Personal, Real Estate

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