Once you have found the property you want, an initial legal contract called a compromis de vente is signed by both parties. This commits everyone to the transaction and can be enforced by the courts, so it is vital for your lawyer to cover all eventualities with get-out clauses (conditions suspensives) in case searches, surveys, issues surrounding rights of way and mortgage applications go wrong. After approximately two months you will sign the final contract (acte de vente) in front of a notary.
Costs
Allow 12-15% in total, to cover legal and estate agents’ fees (sometimes charged or half-charged to the buyer) plus stamp duty and other fees
VAT: 19.6%, chargeable on new property - although if you sell within 20 years the outstanding balance will be repaid, eg if you sell after five years, you get 15 years’ worth of VAT back.
- Income tax on rentals: 25%
Average prices
- Two-bed houses: £114,000
- Four-bed houses: £435,000