How bargains in France can cost a small fortune; A dream of a house across the Channel can quickly turn sour for British buyers.

Nigel Lewis looks at some of the pitfalls of buying and renovation

Copyright 2002 Associated Newspapers Ltd.
DAILY MAIL (London), June 28, 2002

THERE has been a surge in the number of people from the UK buying properties in France this year, according to figures released last week by the mortgage lender Abbey National.

The number of French property transactions completed by UK buyers has leapt by more than 70 per cent over the past 12 months. Low French house prices, a strong pound, France's superior public services and our poor summers are fuelling this trend.

But many of the 100,000 people who buy a home in France each year are ripped off or make expensive mistakes when buying. The French legal system is at best archaic, and that goes for its property laws, too, which were drawn up after the 1789 revolution and haven't changed much since.

Many French people are amazed at the amount of money UK buyers have to spend; in France, the average property costs GBP 40,000, rather than GBP 100,000.

And with so much cash swilling around, no wonder unscrupulous sellers and builders are grabbing the opportunity to make some money.

Stamp duty

PEOPLE buying a home in one of the more far-flung parts of France should pay attention to property and land registration. When a house is bought in places like this, the notaire may suggest that you do not inform the French land registry of the purchase, to avoid their version of stamp duty. This is highly inadvisable - it may save you money and make the notaire's job easier, but the property will not legally belong to you.

Surveys

MANY UK buyers move to France not realising that French banks often lend on a property without even poking a stick at the brickwork. Some French agents and sellers take advantage of this to offload distinctly dodgy properties that may have major or minor structural problems - both of which could be expensive.

'The best you can do is to take an architect along with you when you look around a property, as they are the nearest thing to a surveyor in France,' says Monique Fauchon of French property law firm Fauchon Levy.

'On the other hand, in France there are more rules about property descriptions than in the UK. If a room is more than five per cent smaller than the particulars say it is, you can sue the vendor.'

Deposits

MAKE an offer in France and you need to put down a 10 per cent deposit. But many people do not realise that unless you ensure there is a 'Clause Suspensive' in the preliminary contract, you will lose it if you try to pull out of the deal. It is not unheard for people to lose thousands of pounds in this way.

The lawyers

NOTAIRES are supposed to be independent government officials - something between an estate agent and a solicitor.

Often, a vendor will suggest that you share a notaire, but chances are that the one they want will be on their side if things go wrong. It's advisable to hire your own, preferably from out of town.

'I bought a bit of land and discovered that there was a legal charge against it brought by the seller's ex-wife,' says Andrew Smyth, owner of a manor house in Northern France (see above). 'It turned out that the notaire knew the man and it would seem he decided to ignore the legal charge - which normally would stop anyone buying land or property.'

Builders

IT IS illegal to pay French builders 'cash in hand'. Unlike in the UK - where the builder is likely to get only a slap on the hand if he is found not paying VAT - in France both you and the builder will face an automatic and hefty fine.

Death duty

THE French property and taxation system is fraught with problems for your relatives if you die over there. Your estate both in France and the UK will be liable for French Inheritance Tax or 'succession duty'. On your French property, everything over GBP 30,000 will be taxed; and on your total estate, anything over GBP 400,000 will also be taxed - whether it is in France or not.

The trouble with fixtures and fittings

THIS WEEK, pyramid-selling millionaire Theresa Hamer was taken to court by the man who bought her home for GBP 3.5 million.

When he moved in, he found that the patio he insists had been included in the sale had gone missing.

The National Association of Estate Agents says these kinds of arguments over fixtures and fittings during the housemoving process are becoming increasingly common as house prices rise.

This is because some vendors find that during the time it has taken to get to completion (which these days averages 12 weeks) their property has risen by several thousand pounds.

In a bid to get the 'lost'money back, they rip out everything they can from their old home. And according to London firm Solicitors Direct, around 15 per cent of all property transactions end up being delayed or complicated by arguments about fixtures and fittings. But what can be done to prevent these unseemly squabbles? The answer, sadly, is not a lot.

The best you can do is to carefully read the fixtures and fittings list sent to you by the vendor's solicitor. Make sure it matches what's there when you move in.

If it doesn't, you can sue. If it does match up but they've taken something left off the list, then it's a matter for more protracted and costly legal debate.

NOVELIST Andrew Smyth (pictured right) has seen just about all there is to see during the 24 years he has owned a five-bedroom 18th-century manor house in the Pas de Calais, on the outskirts of the village of Hucquelier.

The house is where the hit comedy French Fields, starring Julia McKenzie and Anton Rodgers, was filmed.

'I spent several years in a fairly corrupt and red-tape laden African country before we bought the house in France, and nothing compares to some of the things that have gone on here,' says Andrew, whose latest novel, Caesar's Passage, is out this week.

When he found out about the inheritance tax situation, he put the house into the ownership of a company and bought shares in it rather than owning it directly.

'This means that if I sell the house, I won't pay the hefty sales tax,' he says.

'I would remind anyone that the culture is totally different from the UK.

You really have to do your homework and get round them by knowing the rules inside out - and speaking good French is a must.'

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