Buying a home in France
What should you consider when buying a property in France? How does the purchase process work, which tax and inheritance rules apply? Here’s what you need to consider when you are purchasing a new holiday home in France.
Buying property in France
Note: As for all credits, the bank does not commit to grant a loan and any credit is offered on a case-by-case basis subject to the client’s specific situation. Skandinaviska Enskilda Banken AB (publ) is subject to the prudential supervision of the Swedish Financial Supervisory Authority, Finansinspektionen. SEB Luxembourg is furthermore supervised by the Luxembourg Financial Supervisory Authority, Commission de Surveillance du Secteur Financier (the “CSSF”), in its role as host member state authority.
Whether you're looking to buy a new property, refinance an existing mortgage, or switch from another bank, we’re here to support you right from the start. As the sole Nordic bank with a representative office in France, your dedicated client executive will help you find the right mortgage solution.
With access to our extensive network of local experts and global partners, we offer mortgages for properties in prime French locations, including the Côte d’Azur, Paris, and the French Alps.
A few things to consider
- We offer a minimum loan amount of EUR 500,000 and up to 75% of the value of your property.*
- We offer a personalised amortisation plan including the option for an interest-only period. Depending on your financial needs, the tenor can extend up to 20 years.
- Our French mortgages are provided in EUR and the interest rate is variable. By having your property and loan in the same currency, you limit potential foreign exchange risks.
- The mortgage is secured on the French property itself. Additional collateral is not usually required.
The purchase process in France normally takes between two to three months. We recommend that you reach out to us as early as possible in the process and always prior to signing any binding agreements.
* This refers to the value according to the current market valuation performed for the purpose of the mortgage application, or the purchase price of the property, whichever is lower.
Buying property in France: step by step
1. Loan application
Before finding the property that you want to buy you can apply for a preliminary credit approval. That gives you the indicative terms of the loan and is valid for six months. It enables you to act quickly when the right opportunity arises.
2. Valuation
Once you have found a potential property to purchase, the next step is to request a valuation. It will be done by an external expert who is approved by us. The cost for this valuation is charged to you.
The Loan-To-Value ("LTV") of your mortgage loan is based on the lowest amount of the purchase price and the external valuation.
3. Preliminary sales agreement
When you and the seller have reached an agreement, the notary drafts a preliminary sales agreement, a "compromis de vente".
After the mandatory 10 day cooling-off period it is common practise to pay a 5 – 10% deposit. When that is done you are obligated to finalise the purchase.
Once we receive the signed preliminary sales agreement and any required bank documents, we will take the formal credit decision and finalize the terms of your mortgage loan.
4. Loan contract
When the due diligence procedure is completed, and the formal credit decision taken, we send you the binding loan offer. After 11 days of mandatory reflection period, you can sign it and return it to us.
Before sending us the originals by postal mail or courier (DHL, UPS etc.) we need you to send us a scanned copy of the complete signed loan agreement.
5. Completion day
The signing of the final purchase and mortgage deed takes place in the notarial office. You must either be physically present at the meeting or arrange for representation via power of attorney.
We transfer the loan amount directly to the notary's client account. The notary will instruct you on how and when to transfer proceeds to cover the part of the purchase price and external costs paid by you.
6. Enjoy your property
Congratulations!
Get to know more
Please reach out to your client executive or contact our international mortgage team to discuss how we can help you find the right mortgage plan.
Postal address : P.O. Box 487
L-2014 Luxembourg
Office address : Skandinaviska Enskilda Banken AB Luxembourg Branch
Royal Park, 29, Avenue de la Porte-Neuve, L-2227 Luxembourg
Switchboard : +352 262 31