Buying Property in France Post Brexit
So what does Brexit mean for British buyers?
Having lived in England and loving the Brits, my ears always ring when I hear the familiar accent. I immediately pay attention to whoever is talking. Sitting in a restaurant in Saint-Tropez, I am always delighted to hear so many British everywhere.
After Brexit was voted last June people in Britain may wonder how it will affect them from purchasing a home in France.
While we don’t actually know all terms of the UK leaving the European Union yet, not much will change for British wanting to buy a home in the wine and cheese country.
Getting a Mortgage After Brexit
France is a popular country for buying property where “200,000 British holidaymakers own a second home,” according to the Telegraph.
Post Brexit, it may be more difficult for British to secure a mortgage. In addition, they may have to pay higher rates. In fact, French banks have stricter criteria for non EU-citizens. However some say it won’t change because a large number of British citizens borrow from French banks.
Normally French banks allow a buyer to borrow between 70 et 80 percent of the property’s value for European residents and some limit to 50 percent for non-EU citizen.
Will Taxes Increase?
Taxes shouldn’t increase as France and the UK have a double tax treaty that is separate from the EU. Therefore Brexit shouldn’t affect this treaty.
Value of the Pound
Many worry about the drop in value of the sterling. After Britain voted for Brexit, the pound dropped to a 30-year low. Exchange rates can be a worry for British buyers and some people might prefer to wait for until it settles down. At this time it is difficult to predict any fluctuation.
In conclusion, not much should change for UK citizens who want to purchase a house in France. We won’t be able to predict much more until the talks with the EU take place. What we can say is that British are large clientele for property in France and I want to keep sipping my coffee while listening to British talk.