Buying off-plan in France - new-build homes in France

Buying homes in France off-plan should ensure you end up with the most modern materials and technology in your French property. New-build homes in France are attracting an ever growing number of buyers, particularly investors, who are turning away from period houses. Building doesn´t start until much of the development is sold although you will be able to view the location before signing up to buy off-plan in France.

Leaseback scheme for off-plan homes in France

This government scheme lets the buyer retain the property as a holiday home in France for a specified number of weeks each year. The French property is then let out for the remainder of the year by a holiday company, guaranteeing the owner rental income.

You also avoid paying VAT (TVA) at 20.6% and the leaseback scheme continues to be one of the main draws for investors interested in new-build homes in France.

The process of buying homes in France off-plan

After deciding on a new-build in France you will be asked to sign a "contrat de reservation". At this point you are required to pay a deposit of between 2% and 5%, depending on the date of completion stipulated in the contract.

There are a number of UK-based solicitors specialising in international law and offer expert French legal services on buying new-build homes in France. Our service directory can be used to find UK and French solicitors and legal services.

Paying for off-plan homes in France

Contracts for new-build homes in France include details of staged payments to be made at certain points during construction. They are as follows:

• 5% deposit when contrat de reservation is signed
• 30% when foundations are completed
• 35% when the property is weatherproof
• 25% when construction is completed

Due to the nature of the staged payment scheme French law requires the developer to have guarantees in place to protect the buyer. The date at which the legal title to new-build homes is transferred should be stated in the contract although this is not necessary the date of completion.

The final 5% is payable when you receive the keys to the property.

Mortgages for new-build homes in France take staged payments into account and funds are released in accordance with the timescales laid out in the contract.

Extra costs and the disadvantages to buying homes in France off-plan

New-build properties are subject to TVA at 20.6% which is usually included in the price. You should also allow 2.5% to 4% of the purchase price for notaire fees. These are usually payable when the foundations are completed.

There will be a considerable time difference between signing for off-plan homes in France and moving in so be sure to obtain a firm deadline for completion. Before proceeding to buy off-plan in France you should consult a solicitor who is an expert in French property law, who will help you avoid the pitfalls associated with buying new-build homes in France.