‘We believe that this change in presidency will have no great effect on the French property market. House prices rose by about 4.3% during 2011 according to INSEE (the National Institute of Statistical and Economic Studies) and when coupled with low interest rates and more favourable exchange rates – France is still a desirable and logical place to buy a property’

Matt remarks that ‘France remains one of the most popular places in which to buy a second home for UK residents and other Europeans. Its important to remember that Hollande’s main objectives are to tax the rich and end austerity, this could mean a rush of wealthy French looking to buy property in the UK, however, it is not thought that there will be any major effects on the domestic property market.’

‘The most important element driving property sales in France at the moment is the favourable exchange rates. 12 month ago the rates were around €1.10 to the pound, but we’re now nearing the €1.25 mark. To the buyer, this is a huge difference from 12 months ago and makes the mortgage process a lot easier’

In conclusion – France will continue to be one of the most visited countries in Europe and is regularily voted and one of the best places to live in by various on-line and travel publications.

The stretch of coast from Menton to St Tropez called the French Riviera and a little further inland has been well populated by English and international residents for many years. Popular due to the weather and ease of commuting from most city centre airports across Europe makes the area a realistic commute for many international business people. But what about the families and children ?

If you are moving from the UK or else where in Europe to live in France for whatever reasons, and you have children of school age, the question of education will loom very large in your thoughts and plans. Most people are aware that, in terms of social integration and language learning the younger the child, the less of a worry relocating to France will be. Children of under about 8 years old will usually adjust very quickly, and should flourish in the caring low pressure environment of nursery and primary education in France, but the process of adjustment is quite different for older children. Being taken from a system that you have known all your life, and finding yourself in an alien environment and expected to study and socialise in a foreign language can be stressful.

Luckily, the French Riviera region has a solid choice of international schools for all ages. The region received a huge influx of international families in the early 1970’s due to the construction on the international business park in Sophia Antipolis. Today there are some 20,000 employees in the park meaning there are also many children out there in need of an ‘international education’.

The region is more than capable of offering a rounded education system to these children in the form of ‘International Schools’. The largest schools are EBICA and CIV, both based within the business park, plus the International School of Nice based  a little further away and Fenelon in Grasse. The schools have both French and English sections and bring the children to ‘Baccalaureat International’ qualification. The children throughout their education enjoy a split between English and French within their time at school. There are also sections to cater for other languages such as German, Italian, Spanish and Russian.

If the family believe they won’t be on the French Riviera for a great length of time, then there is the option of placing your child within the English education system at Mougins School bringing them to the level of IGCSE, AS and A level examinations. Mougins International School is also based near to the business park of Sophia Antipolis. Although education at the Mougins International School does come at a high price.

The international schooling system is tough and many parents believe the additional English elements push the children into a world of homework and in general school life is far more intensive than their peers in the UK. However, to graduate with a strong second language in today’s competitive business world is a huge advantage. The important thing to remember is that the school systems are well tested and have been in successful operation for many years.  If you are thinking of buying a house on the French Riviera do your own home work on the international schooling system well in advance as spaces are at a premium.

France Telecom, being the biggest player in France and already the owner of the national copper network, will take the lead in providing fibre. However, the fact is that it is unlikely in the extreme that the coverage will be universal. The cost of bringing the service to rural communities will be prohibitive and the difference between urban and rural access is likely to be reinforced. The only prospect of this changing is if there is regional or departmental support by way of subsidies. This is the case in some areas for satellite broadband. Clearly the departments come under pressure to do something as areas without broadband suffer in terms of property values and the willingness of many new businesses to set up in these areas.

While this is a good idea on paper, competition will be limited to the three main providers. The other consideration will be that not everyone in an area will want to go over to fibre so France Telecom will have to maintain both the copper and fibre networks!

With effect from 2010 the French Government has amended the critera for being able to benefit from this scheme. This is mainly in regards to newly constructed property as the government has decided that over time mortgage tax relief should only be payable on such properties if they meet the low energy consumption standard However the rules on existing properties remain unchanged.Tax Relief only applies to the first 5 years of your mortgage.

• Applies whether you are buying a house/apartment or building a house.
• Is available for 1st time buyers and existing home owners who are buying a new main residence.
• The relief is granted at the rate of 40 percent of interest incurred in the first year, followed by 20 percent of interest paid for the remaining four years.
• Maximum reimbursement available for a mortgage in a single name is EUR 3,750 over 5 years (EUR 750 per annum), if this person is registered disabled then the limit rises to a maximum reimbursement of EUR 7,500 over 5 years (EUR 1,500 per annum)
• If the mortgage is in joint names then the maximum reimbursement is EUR 7,500 over 5 years (EUR 1,500 per annum), if one of the couple is registered disabled then the limit rises to a maximum reimbursement of EUR 15,000 over 5 years (EUR 3,000 per annum)
• There is also the possibility of additional sum of a maximum of EUR 500 over 5 years (EUR 100 per annum), for each person residing within your main residence for whom you officially have financial responsibility for i.e. Children, Parents. With regards to children where the parents are divorced and have joint access the maximum available would be EUR 250 per child over 5 years (EUR 50 per annum)

With regards to newly constructed property if the property is constructed to the Bâtiments Basse Consommation (BBC) low energy standard, then the relief is granted at a rate of 40 percent for 7 years. To quailfy to the BBC standard depending on what  region it is in and the properties altitude they are required to achieve an average energy consumption no higher than 50 kWh/m² per year.

For those new properties that do not meet the BBC standard, the relief will reduce to 30 percent in the first year and 10 percent in the four subsequent years, in 2011 the this will lower again to 25 percent and 10 percent and from 2012 the relief will be 15 percent and 5 percent.

From 2013 only properties that are energy positive (BPOS) will be entitled to 40 percent relief over seven years, and all other new property will need to meet the  BBC standard in order to obtain the relief of 40 percent in the first year, and 20 percent for each of the subsequent four years.

Exceprt out of the original article written by financial expert Steven Grover on expatica.com

Why use a mortgage broker to organise your French Mortgage? Why not go directly to a French bank? Surely the bank is a cheaper option since I will not have the “commission” of the broker added to the cost of the mortgage? These are some of the questions we are asked on a regular basis.

It may well be that you live in France and have a good long-term relationship with your high-street bank. If you talk to them about your French Mortgage you might receive a loan offer for your intended purchase which may satisfy your needs but………. it will probably be a mortgage product just from that particular bank.
Will your Mortgage Broker go that extra mile?

For the vast majority, and especially non-resident buyers, it is quicker and more effective to use the services of a qualified and experienced Independent Mortgage Broker. An Independent Mortgage Broker can look at your specific circumstances and then look through a panel of lenders and find you the best possible French Mortgage product for your specific requirements. It is also advantageous to choose a broker that is actually based in France. A Mortgage Broker actually based in France has a massive advantage of being able to sit in front of the lending banks and deal with any possible delays in person. They will also naturally have a better personal relationship with the French Bank lending teams. This will all equate to the customer receiving a better and quicker service.

There are some important advantages for the customer when buying a Property in France and looking for a Mortgage in France as a non-resident or even if you’ve lived here for some time.

1. We speak your language and can explain the process to you and communicate with you throughout the process. We will supply all the documentation to you in English. Plus, we’re based in France – just 10km from Cannes and Nice.

2. An experienced Independent Mortgage Broker in France has a panel of lenders which he or she uses to place your French Mortgage loan application with.  These lenders will almost certainly have international departments specialising in dealing with UK and other non-French residents purchasing a property in France. This means that the underwriting teams of these banks will understand non-French tax situations and other documentation that a French High Street bank might simply not know what to do with.

3. Most Independent should not charge a brokerage fee. They receive their compensation from the lending bank on completion of the French Mortgage loan process. This fee is not added on to your application. The bank pays this directly to the Broker. The interest rate you receive in your offer will not be higher than if you applied directly to the bank in question. In many cases, the rate will be lower owing to the volume of business that the broker conducts with the lending bank.

4. Owing to the privileged relationship between the broker and the lending bank, your loan application is more likely to be treated within a faster time frame and with more consideration than if you were applying on your own or through a bank branch. The underwriting teams within the French Bank will probably prioritise the applications from your Independent Mortgage Broker.

The above 4 points are crucial to making your whole French Property purchase go as quickly, as smoothly and with the least amount of pain as possible. Plus, you will be getting a French Mortgage product that is matched specifically to your needs and requirements.

For more information, visit: euribor-rates.eu