Once you have found your dream property and assessed the price, it’s important to remember that there will always be additional costs that you need to consider. These will all have an effect on the overall price of your new property, and you must take these into account before you can determine exactly how much you can afford.
The cost of these extras will vary dependent on a number of factors – its age, whether you need a loan to buy it, and niggling costs that could pop up unexpectedly. We generally advise all purchasers to allow around 7-10% of the property’s costs for all fees and charges, or 2-3% if the property is new. This would include your deposit, the fees involved in setting up a mortgage (including life assurance), transfer tax or stamp duty, notary fees, independent legal fees, property registration fees and possibly a survey – as well as the estate agent’s fee, which is paid by the buyer in France.
Overall, when purchasing property in France, there are a number of elements that must be considered; these include:
- The total amount of money you have available to purchase a property
- If you buy with a mortgage, how much of a deposit will you need? How will the repayments be made?
- The possibility of re-mortgaging your UK home to release equity
- The costs that come with buying property (i.e. taxes and fees)
- The cost of maintaining the property and spending time there
- Your maximum purchase price, taking all of the above into account