Equity Release on Your French Property

Equity Release is a term commonly used to indicate the release of capital from a real estate property. 

In France you can release up to 50% of the current value of your French property in cash to use for other projects, with a minimum loan amount of 300,000 euros.  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 for non residents 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. The maximum loan you can take is 50% of the current value for refinance and cash out together.

You do not need to justify what you will do with the funds released.

To qualify for a French Equity Release mortgage you must have a minimum of 100 000 euros annual revenue and minimum of 500 000 euros net assets.

We will be happy to confirm if you are eligible in principle. Please click on the "Apply Now" button below to provide your financial information.

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

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 & legal 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 = 750,000 €
Outstanding balance on your existing French mortgage = 0€
Maximum loan allowed = 375,000€ (50% of 750,000€)
Notary & legal costs = 5625€ (can be included in the loan amount or can be paid seperately)
Bank and broker transaction costs = 5625€ (can be included in the loan amount or can be paid seperately)

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.

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.

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Testimonials

David, South of France, Equity release on home in France

"...The process was simple, effective, and quick... France Home Finance have proven to be outstanding in their service and flexibility... they even negotiated a rate reduction after the bank had made an offer at a higher rate. Now that's incredible!"

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Resources

Best French Mortgage Rates

Find the best interest rates available on the market for your French mortgage here:

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French Interest Rate Indices

Check the latest Euribor and other key French mortgage rate indices here:

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2018 French Wealth Tax Changes

Here are the changes you need to know about:

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Case Studies

Equity release to renovate your French Home

The Reynolds decided to refinance their 250 year-old farmhouse to recover cash they had invested in renovations.

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