Digital technology crosses many borders. This is a minor revolution for expats, who can now easily become property owners in France without ever having to leave their country of residence.
How do you get a mortgage?
There are two major errors to avoid if you wish to obtain a mortgage from a French bank.
First of all: your choice of bank. As a non-resident, you may live in a time zone totally out of sync with the opening times of banking establishments in France. Also, certain banks will categorically refuse to deal with expats. It’s better, therefore, to approach banks who have made it their business to offer services to expats. Such establishments adapt the services they offer to meet your specific requirements.
The second mistake to avoid: overestimating your margin of negotiation. Banks are, in fact, more demanding when faced with a client whose resources, and therefore financial capacities, are more difficult to assess. As a consequence, they will require a higher deposit (approximately 20% of the purchase price plus the notary’s fees). Generally, the borrowing rate applied is also higher: between 0.2% and 0.5% compared to French residents.
Make an offer on line
To help expats with the whole process, My expat has developed a digital platform specifically designed for non-residents. No need to make the journey back to France, this secure space provides all the information you need to manage your project (civil status, property details, surveys, co-ownership information, etc.) which is collected to be shared between participants in the transaction.
Thanks to this totally digital process, the whole procedure is much, much easier. If a property catches your eye, electronic documents are sent directly and don’t have to be provided again since they’re saved on the platform. This saves time, which means greater reactivity when you want to make an offer on a property you’ve spotted.
Using a power of attorney, you can finalise your purchase by making an offer or authorising signature of the preliminary sales agreement via the platform. And all this, without incurring any travel expenses.
The advantages of a power of attorney
In French law, authority granted by private agreement to buy or sell a property. That means that both parties, the principal and the authorised representative, can draft the agreement without external intervention from a public authority. The authorised representative will then be entitled to represent the principal at the notary’s to sign the preliminary sales agreement.
To be effective, the power of attorney must be sufficiently comprehensive and precise. In fact, the authorised representative may only do what the principal has authorised them to do. The power of attorney therefore incorporates the conditions established in the preliminary sales agreement which must be signed, i.e. the price, the nature of the property and all characteristics and information relating to it (surveys, floor areas, etc.). The specific terms and conditions of the sale, like an exemption to the hidden defects warranty or conditions precedent of the mortgage must also be notified.
My expat can provide this power of attorney service. It allows our experts to sign the final deed of sale for your buy-to-rent investment. From beginning your search through to finding a property, you therefore benefit from a simplified and completely secure process. Which means that you can focus on looking for a property that will bring you the best return on investment.
Do you have a project in mind or any questions? Don’t hesitate to contact us, we can organise a phone call with you to answer all your individual questions.