Hi there,

A very warm and sunny welcome to my June newsletter and may I say again that I was so touched – and frankly overwhelmed – by the generosity of spirit of my readers! I have had so many congratulatory emails and calls wishing me well for my upcoming wedding. As you know, we are tying the knot both here in London (legal bit) and in France (naturally). I am so looking forward to having family and friends together in the French sunshine and will of course include some photos of our happy event.

I thought you might like to have details of the French venue. It is called the Moulin de Mombreux and is located just half an hour from either Calais or Boulogne in the Pas de Calais area. It is an old water mill situated on the banks of a pretty river, complete with little bridge and small waterfall. Sounds romantic? It is! Take a look at their site: www.moulindemombreux.com
for more information.

So, touched by the love bug as I am, and mindful of the difficult times we live in, I have some great pieces for you in this month’s newsletter. My fiancé and I have just come back from a wonderful trip in the Pyrenees Orientales department of the Languedoc Roussillon – an area I love and thoroughly recommend. Read my top tip on how to make the most of this stunning region of France. Next, I am often asked about healthcare in France and what you are entitled to if you move there, so read on for some more info on this.

Regarding property purchase, France is worth considering if you are an investment buyer. In principle, this means buying a property which will gain in capital value and/or provide you with a rental income. It does not have to be a huge or very expensive property. Many French people buy a small second home that will one day afford them an additional income to top up their pension. Remember that even people on modest means can become property investors if they want to! France is a safe investment country compared with some more exotic locations and has a clear and logical legal system which protects the purchaser.

So this month we have 2 properties for you to drool over! Firstly, a wonderful old stone property for you on the market at a really good price in the Loire Valley as well as an investment apartment in that city built for lovers, Paris (well, I said I was touched by the love bug!) for those who are considering buying as an investment.

As ever, our very own Charles Purdy keeps you up to date with the very latest on currency and our Smart team will be delighted to help you with all your currency transactions.

I so appreciate your letters, emails and call so do keep them coming. Remember that we are here as a hand holding service for all your French plans and if you have not already armed yourself with a copy of our France Property de, simply click on: http://www.FranceBuyingGuide.com/guide.htm

Kind regards as always,

Alexis
mailto:Alexis@overseasguidescompany.com
France Buying Guide
The Overseas Guides Company Ltd
0207 898 0549 (call me!)

Our simple guide to staying healthy in France!

How you get access to French state health cover depends on your status - and now not all EU expats are eligible for automatic coverage.

If you are on holiday:

You need to have a European Health Insurance Card (EHIC) - each member of the family needs one, including children under 16. The EHIC replaces the E111 and E128. It entitles you to ‘necessary’ healthcare and covers the same costs as if you were a contributor to the state health system. As this is not the total cost of care, and the EHIC does not cover repatriation, you may want to take out private health insurance. We can help you with this: we have several private health insurance providers that we recommend (your homework is done for you!), simply click on: http://www.FranceBuyingGuide.com/resources.htm

To get an EHIC in the UK, apply online at www.dh.gov.uk/travellers or www.ehic.org.uk; or send a completed EHIC form, available from your local post office, to:
EHIC Applications
PO Box 1115
Newcastle upon Tyne
NE99 1SW

If you plan to become a resident of France:

The EHIC is not valid for residents of France.

In the past all EU expats arriving in France were eligible to join the French healthcare system. However, due to a French government ruling in 2007 this has now changed.

If you are an officially retired UK citizen:

You can join the French healthcare system. You have to do this via the Caisse Primaire Assurance Maladie (CPAM )using an E121 form. This form is issued to:

1. Those of state pension age and in receipt of a UK state pension.
2. Those in receipt of Long Term Incapacity Benefit from the UK.
3. Those in receipt of Severe Disablement Allowance from the UK.

In the UK, this form is available from the Department for Work and Pensions (DWP) at Newcastle upon Tyne (see www.dwp.gov.uk.)

As long as you continue to be in receipt of the state pension/benefit the E121 will continue to be valid. Also if you are married and your spouse is eligible for cover under E121, their entitlement is extended to you according to the right ayant-droit.

If you are on Long-term Incapacity Benefit, say with a condition such as Multiple Sclerosis, you will receive almost all of your medical treatment free – doctor’s visits, pharmacy bills, routine dental treatment and hospitalisation – regardless of whether this treatment is linked to the condition that originally put you on Long-term Incapacity Benefit. This, however, does not apply to your spouse, and so you will need to take this into consideration when choosing top-up insurance. You will, however, have to pay for blue-label medicines (considered non-essential) and certain defined items such as hearing aids, glasses etc.

When in France, take your completed form, along with proof of residence in France – your carte de sejour if you have one, although your last two EDF bills should be enough, as well as a copy of your passport, birth certificate and marriage certificate if appropriate – to your local CPAM office (most towns with have a CPAM office but, if in doubt, always enquire at your local “mairie”).

When you affiliate to the system you will receive your carte vitale (green card) which you must take with you whenever you visit a doctor, specialist or hospital and when you pick up prescribed medicines.

If you are a UK citizen under the state retirement age, planning to live but not work in France

You will not be allowed to affiliate (unless you have an E106 form - see below) until you reach state retirement age or five years residency when you will be allowed to join the French healthcare system. In this case you are wise to take out health insurance (again call me for help with this!).

If you have an E106 form you can join the French healthcare system but will just be covered for the length of time your form is valid. The E106 form is usually valid for up to 2 years and the length of its validity depends on the amount of National Insurance contributions you have paid in the last 2 tax years. Again, you can get this form from the Department for Work and Pensions (DWP) at Newcastle upon Tyne (see www.dwp.gov.uk).

As before, when in France take your completed form, along with proof of residence in France, to your CPAM office.

If you live and work in France (or you are not an EU national)

You will need to affiliate as a resident. However, unlike with an E Form where your basic healthcare costs are without charge, residents must make a financial contribution.

If you have not completed a French tax return then other reasonable proof of income will be accepted.

How you affiliate depends on your profession.

If you are an employee, then payments to the health system will be automatically deducted from your salary. Also, your employer is obligated to provide you with a French social security number, which will make you eligible for reimbursements of medical expenses under the mandatory contributions-refund system, called the régime obligatoire. You will also be issued with a carte vitale.

If you are self-employed, where you register to pay your health charges will depend on what professional activity you do.

I have tried to consolidate all this information but I do strongly recommend taking out some private health insurance. Also, if you are planning to work in some way in France, I recommend that you talk to a bilingual lawyer who will be able to help you with all your work and tax issues. Our beloved country of France, romantic and beautiful though it is, can be heavy on bureaucracy! Getting the legal bits correct and looking after your health issues are prime concerns. So drop me a line or fill out our links form for more help and my recommendations for the best insurers/legal advisers and indeed any other professional help you may need at:
http://www.FranceBuyingGuide.com/resources.htm

Stop the Value of Your Pension from Decreasing!

by Smart Currency’s Charles Purdy.

Many expats abroad unknowingly lose money when receiving their monthly pension payment. Often a pension is paid in sterling at a UK (or off-shore) bank, exchanged into the local currency required, and then sent to the pension holder’s overseas bank account. Alternatively, pensions are paid into a Sterling account in their overseas bank account, and then exchanged into local currency.

By using the standard banking system, money saving options are often overlooked, unnecessary charges can be made and poor currency conversion rates applied. Charles Purdy states “On average, a pension holder loses around £30-£50 unnecessarily on every transfer – this amounts to actually giving away £600 a year – and in some cases, much more!” So what is the solution? It’s simple – use an international payment specialist, not a bank.

The money saving option – fix the currency exchange rate
Charles comments, “Take Mr Benson, who retired overseas at the end of 2007. He needed to receive his Sterling pension in Euros. In January 2008, he explained that his monthly pension amounted to £1,134 and wanted to know which options were available. After a brief conversation, he decided to set up a regular payment with a fixed exchange rate of 1.33 for the next 24 months until the end of 2009. In January, he received €1,508.22 in his overseas bank account and will continue to do so every month until December 2009”.

If Mr Benson had decided against fixing a currency exchange rate, his monthly amount would have decreased along with the weakening sterling rate - and by December 2008, his monthly transfer would have fallen to €1,190.70 - a 21% drop in value!

Avoid charges
Charles continues, “Mr Benson, like many other expats, assumed he was getting the best possible deal from his bank - but sadly, banks often fail to offer or even mention the option of fixing a currency exchange rate for use in the future. They tend to offer customers lower exchange rates and usually charge commission and transfer fees, all of which can be reduced, if not eliminated altogether. There is absolutely no point paying fees you don’t have to, particularly in the current economic climate where every penny counts! And no matter where you are in the world, with the loss in value of sterling over the last 18 months, this scenario can apply”.

Get good exchange rates
International payment specialists offer exchange rates that are guaranteed to beat the rates provided by the bank. Banks often set their buying and selling rates for currency first thing in the morning – when you visit a branch, you’ll see them hanging on the wall. Specialists, however, don’t set the rates in advance but call into the market floor to obtain the best rate possible at the time of the transaction.

Charles states, “For many expats, watching the value of their Sterling pension depreciate over the last year must have been soul-destroying. When €1,508 is expected in the bank and only €1,190 arrives, the recipient clearly suffers great anxiety”. Charles Purdy’s final comment is “Always remember, a short phone call could save you up to £600 a year!”

Charles Purdy is a Director at Smart Currency Exchange Limited – the only international payment specialists in the UK who work specifically to help people save money on regular transactions such as mortgage or pension payments. To move money overseas, including funds for property purchases and also the repatriation of funds back to the UK go to www.SmartCurrencyExchange.com for further information.

To read the latest market information on Serling and the Euro go to: http://www.FranceBuyingGuide.com/Currency240609.htm

Why overseas property buyers lose money...
...and how you can avoid it!

To get a copy of the report at no charge go to: http://www.smartcurrencyexchange.com/freereport.htm

To get a Better-than-Bank rate go to: http://www.smartCurrencyExchange.com/smartsquotation.htm
or call Carl on 08081 630 102 freephone.

A stone fermette with gîte in MAYENNE (Pays de la Loire)

Price: €206,700

This lovely property is a charming stone fermette: a "fermette" is a small farm, just as a kitchenette" denotes a small kitchen. It was restored in 2002 and has numerous outbuildings and a gîte plus a garden with an orchard.

It has charming old stone buildings, a large living room with fireplace and exposed beams. The large living room has parquet floors and an open fireplace with a wood burning stove and exposed beams. There is a fully fitted open plan kitchen with a parquet floor too.

There are 3 spacious bedrooms and a shower room with a separate toilet. The third bedroom is part of the attached gîte and can be accessed from the landing area.

The attached gîte also has further living accommodation comprising a kitchen with fireplace and a door to the exterior, a living room with an exterior door, a store room with a staircase, a bedroom/ shower room and an attic for further conversion.

There is a bread oven to restore, a Dutch barn and stone stables. You really do get a lot for your money here don’t you? You can also extend the buildings should you so desire. And there is that opportunity to earn an income with the possibility of a gîte – always useful and if you decide not to go that route you can convert it into accommodation for your family and friends.

It is located in the unspoilt region of MAYENNE (Pays de la Loire), near the town of Jublains. This picturesque region has much of historical and architectural interest yet remains reasonably priced and accessible, with Paris is only 1 ½ hours away by TGV.

There is much to see and do in this much underestimated area of France – people have been trying to keep the area a bit of a secret but more and more people are visiting for the quiet rural feel, the many historical sights and the local riverside activities. When you figure in the easy air travel links to the UK via Rennes or Dinard Airport, or by ferry from Caen, Le Harvre and St Malo it makes the property even more attractive.

Are you interested in this, or indeed in any property in France? I’d love to help – just give me a ring on 0207 898 0549 or, if you fill in the form at the following link, I will call you to discuss your requirements.

http://www.FranceBuyingGuide.com/resources.htm

Investment Property: Residence du Val Senart

Talking as I was about investing in France, I am just going to show you a quick example of an investment property I was made aware of. I won’t go into too much detail – if you need more information please just call me on 0207 898 0549 and let’s chat about it.

Personally I feel that one needs to source investment property opportunities that contain high levels of security as well as strong growth prospects where rental demand is unaffected by economic changes and long term growth prospects (10 years +) are very good.

This is an excellent, low risk, long term investment opportunity which benefits from high levels of demand, excellent location, low prices from 75,000 euro (ex VAT) and guaranteed rental income which is index linked and increases every year.

Residence du Val Senart is located in Ile de France in the town of Quincy-sous-Senart, south-east of Paris. It is adjacent to the town shopping centre and close to the lovely Forest de Senart, offering an ideal place for relaxation and for sporting activities.

Due to the cost and shortage of accommodation in the centre of Paris the majority of students live in the suburbs and commute. The close proximity of Residence Val de Senart to the RER (Paris’s rapid metro system) will have great appeal to students dependent on public transport. Val De Senart is approx 200m from the Boussy St. Antoine stop of the RER system – a suburban commuter train takes only 20 minutes into Paris.

The development will comprise a business residence, offices, a student residence, underground parking and retail units on the ground floor. There is a Reception Area, an IT Lounge , a Restaurant, Bank, Laundry and a large landscaped garden area.

The residence is in a four-storey building with 154 fully furnished apartments. The layout of the apartments provides a combination of work space and comfortable living. Each apartment is provided with ADSL internet connection, is fully furnished and each kitchen is fully equipped. Apartments are between 17m² and 37m², providing spacious living accommodation.

Deal Highlights
» 11 years leaseback fully managed project
» Guaranteed 4.8% yield, index linked to increase every year
» High specification inc ADSL Internet access
» Full furniture pack cost included in price
» Up to 100% finance after VAT rebate
» 19.6% discount (VAT rebate)
» Completion September 2009

Leaseback Scheme
The French leaseback scheme stipulates that investors can buy a freehold property outright and then lease it directly back to a management company. The management company will completely maintain your property and you will not need to concern yourself with rentals, ongoing costs, repairs or upkeep throughout the 11 year leaseback period.

VAT refund
The French government have introduced the leaseback scheme to help incentivise investors to purchase property. With this scheme the government will refund the VAT (19.6%), included in the purchase price upon completion of the property. This represents a significant saving on the initial cost.

Guaranteed Return
The Management Company guarantees its investors in Residence Val De Senart an annual return of 4.8%. The return is provided irrespective of property occupancy, protecting investors from fluctuations in demand or downturns in the property market over the period of the lease.

Index linked
Investors are guaranteed annual returns of 4.8%. All annual returns are linked to the French Cost of Construction Index, so your returns will continue to increase in line with this index. For the last 10 years this has averaged around 2%.

Sounds good to me – what are your thoughts? Do give me a phone call and we can chat about this if you are interested. That number again: 0207 898 0549, or you can fill in the form at:

http://www.FranceBuyingGuide.com/property.htm

Legal Corner: Know Your Obligations

Remember that French source rental income is taxable in France. There are different rules in France for calculating rental income according to whether or not the property is let furnished or unfurnished and depending on the amount of gross income received in the French tax year (the calendar year). Anyone renting out a property in France should ensure they understand the French tax laws before letting.

Remember that a UK tax resident is also liable to income tax in the UK on the same French rental income. This means you will have to decide on your future “domicile”. However, under the UK/France double tax treaty, any French tax paid, if you are still a UK resident, will be deductible against UK tax on the same income – if the French tax is more than the UK liability, you pay the difference in France.

UK tax on rental income is due even if the money is deposited in a bank in France or the Channel Islands and never brought into the UK.

We strongly suggest obtaining the advice of a good bilingual solicitor well versed in both English and French law before you start on your gite business: it will save you money in the long run. You have come to the right place for this: we have truly excellent recommended professionals who can help you in all areas. Click on the following link and simply let me know in which way we can help: you will always get a personal, friendly and hopefully helpful reply!

http://www.FranceBuyingGuide.com/resources.htm

Save money with Insurance

Until recently, I had a fancy sort of bank account that I opened years ago and that covered my travel insurance and a few other bits and bobs. However - times are hard, let’s face it, and I got to wondering if I really needed to be paying the extra bucks every month. Frankly, at the price they were charging me monthly, it would be cheaper just to take out travel insurance for each trip – so back I went to my old friend American Express for travel insurance.

This website has insurance for everything - home, motor, identity and, of course, travel insurance. In the past I found that they were slightly more expensive than some other companies, but – you know what? I would rather go with a reputable company that has been around ages – that way I feel safe.

Many years ago I found myself abroad: my taxi dropped me at my hotel and, as I went to pay I realised I has left my wallet at the airport when cashing money. Yes, you’ve guessed it: in contained my money, my traveller’s cheques, passport, air ticket…the lot.

The taxi turned around and raced back to the airport. Thanks heavens for an honest and adorable chap at the currency desk – as he saw me frantically charging across the airport towards him he waved my wallet in the air…!!

But not before I had time to contemplate exactly what I was going to do. I was on a rebated air ticket, had no money, no credit card…no proof of identity. But, packed safely away in my suitcase, I did have a copy of my American Express insurance policy and an emergency number to call. Only someone who has experienced this kind of panic will understand what an enormous sense of relief I felt!

American Express’ boast is that, wherever you are in the world, 24 hours a day, 365 days a year, you're in safe hands. With over 150 years of travel experience, they know how to help if the worst happens. Whether it's lost luggage at the airport or a skiing accident in a remote village - or a lost wallet abroad - they will help you get things back on track.

There are all sorts of variations in their policies – things like Annual Prestige Travel Insurance for instance, with additional benefits that cover for business and leisure trips and family members, including that children up to the age of 21 can travel independently. This allows your family to be covered, when either travelling with you or individually – a really great idea for a family these days I reckon. The other thing I like is that it is available for travellers up to 69 years of age for worldwide cover and up to 79 years for European cover.

There are more options than you can shake a stick at: have a look and see what you think. Just go to:

Travel Insurance

Top Tip – have you thought about the sunny South?

France is a huge country! Are you stuck as to which area to look in? The choice is great and sometimes it pays to have a little inside info from one who has been there. As I mentioned in my last newsletter, my fiancé and I were heading off down to the Languedoc Roussillon area recently. We found it simply breathtaking as an area generally, with so much going for it.

Take the climate for starters. It offers a truly Mediterranean climate to rival Provence, with many hours of sunshine. Combine that with an amazing diversity of landscape from the mountain ranges (still with snow on their peaks we noticed!), the Catalan influence from Perpignan down to the Spanish frontier and beyond, the sandy clean beaches and pretty fishing ports of Collioure and Port Vendres and you will, I guarantee, be starting to fall in love with the area.

Add a touch of red wine, some Spanish influenced cuisine, a number of great cities and picturesque market towns and you end up with a heady mix. We really did not want to come back!

If you would like my help finding you decent agents in this gorgeous area, just take a moment to fill out our property form and I will be delighted to put you in touch with our very best recommendations: http://www.FranceBuyingGuide.com/property.htm

France Property Buying & Investment Guide

If you haven't already purchased our excellent FULL Guide...why not get a copy today?

The completely educational guide covers the start to finish process of buying a property in France. Every step is outlined starting with the initial idea to buy in France all the way through to areas, how to buy land, investment options and many top tips. This guide is for anyone thinking about or currently in the process of buying property or land in France.

In the course of three years our Guide has been graded a 9 out of 10 and we’ve received huge amounts of positive feedback.

There’s a money-back guarantee if you don’t like the Guide so there’s no risk in buying one – please get yourself a copy to ensure you know what to do and what not to do when buying in France.

More information about the Guide got to: http://www.FranceBuyingGuide.com/guide.htm

And to end...

As you can imagine, my head is filled with thoughts of marrying soon in our beloved France and as I write, it occurs to me this is my last newsletter as a single lady! Life is full of surprises but we all have dreams too and we can make them happen I have discovered – with a little help from our friends and colleagues.

I am lucky enough to love writing for you, helping you and talking about our favourite subject so do keep those calls and emails coming in and don’t hesitate to ask me or one of my colleagues here at Overseas Guides Company if you have any queries at all. That is what we are here for!

I wish you well and very much look forward to sharing some photos of our happy day with you next time!

Kind regards,

Alexis
France Buying Guide
The Overseas Guides Company Ltd
0207 898 0549 (call me!)
mailto:Alexis@overseasguidescompany.com