In France you can release up to 70% of the value of your French property in cash to use for other projects, with a minimum loan amount of 100,000 euros.  Many banks require an annual household income of 50,000 euros or more to qualify. Please note that we are not able to offer equity release for leaesback properties.

• Equity Release in France is not the same product as in the UK. The French product allows you to release funds from your French property that you will then pay back with monthly payments. It is not possible in France to have a mortgage without monthly repayments until your death or the sale of your home, like in the UK.
• If there is a French mortgage outstanding on the property, it must be re-financed at the same time as the equity release so that the new French lender has first claim against your property. See Remortgage with Cash Out.

To qualify for a French Equity Release mortgage, you must have an approved purpose or declared project for the cash, for example :
• purchase of residential real estate
• renovation
• repayment of money used for completed renovation to savings
• purchase of car, boat, plane, works of art
• financing children's education
• investing in pension plan, mutual fund, bonds (in some cases)

Here are some examples of projects are NOT approved :
• repayment of existing debts
• purchase of commercial real estate
• commercial use such as working capital for a business
• purely speculative investments

You will be obliged to show proof of the destination of the cash out such as :
• signed purchase contract for real estate
• signed application for fund investment
• letter specifying the cost of school tuition for your child
• quote for purchase of boat

Before applying, it's important to have an estate agent provide a conservative valuation of the resale value for your French property. French banks require this before considering your application.

There are also transaction costs to plan for when considering if your current property value is high enough for the project to make sense.
• Notary costs - in most cases, a French notaire must change the charge registered on the title of your property from the old bank to the new bank, the cost of this tends to be about 1.5% of the new loan amount.
• Bank and broker fees - this will depend on your specific project and the bank chosen, plan on 1.5% of the new loan amount for estimation purposes.

Example
Value of your French property = 450,000 €
Outstanding balance on your existing French mortgage = 0€
Maximum loan allowed = 315,000€ (70% of 450,000€)
Notary costs = 4725€
Bank and broker transaction costs = 4725€
Maximum cash out allowed = 305,550€

The French lender will be require a complete mortgage application. You must financially qualify for the mortgage in terms of your debt to revenue ratio, your net assets and your monthly disposable income.

Did you know you can use French Equity Release to buy more French property without using any additional cash?
For example, you own an apartment in Paris worth 595,000 euros and you have a French mortgage secured on the property with 200,000€ outstanding.
The maximum equity you can release (leaving transaction costs for simplicity) is 416,500€ (595,000 * 70%) less the outstanding mortgage of 200,000€ = 216,500€.
You can now buy a second apartment and use the equity release from the first apartment to cover the down payment and all purchase costs.
You have just gained another property without spending any additional cash.

Why Equity Release and not simply a personal loan?
It makes financial sense to release equity on your property, rather than take out a personal loan, as the interest rate on a French mortgage will be far lower than that charged on an unsecured personal loan.