Make that French connection

10 things to avoid when buying your dream home in France so that joie de vivre may be yours. By Liz Rowlinson

Easy to reach and offering surprisingly affordable property, France remains a favourite with British buyers. But in a country famous for complex bureaucracy, it is easy to make mistakes – especially if you have rose-tinted glasses.

From unfamiliar taxes to septic tanks, succession law and now visas, it is a minefield for the nouvelles arrivées.

Getting lost in translation

Not translating documents, such as the compromis de vente ( sales agreement) and the diagnostic reports provided by the homeowner, can lead to complications from buyers not understanding what they have signed up for. “I’ve encountered numerous sellers who hastily signed contracts without realising potential issues and obligations,” says Alison Brettell, of Leggett Immobilier in the Auvergne. “These might be servitudes – a right of way that means walkers can pass by your terrace, or that the neighbouring farmer has access to a field via your front garden.” It could also be the stated necessity for a new septic tank, within a year, costing €10,000 to €15,000 (£9,000 to £13,000).

Overdoing negotiation

Low opportunistic offers to UK sellers might be shrugged off. But a brazenly cheeky offer to a French vendor can be a major faux pas. An insulted seller may refuse to negotiate, or even refuse to sell you your dream home. You could also risk this if you think you can renegotiate the price on the back of a survey once you’ve signed the LIA (formal sale offer), adds Andrew Morgan, of Leggett in the Alps. “The compulsory diagnostic reports give lots of information to the buyer, so surveys are rarely used. Properties are valued on these reports, so in France it is not the practice to renegotiate after the agreed offer, as in the UK.”

Not surveying an older property

In some cases, however, commissioning a survey is advisable, suggests Fabienne Atkin, of Ashtons Legal – because while the diagnostic reports cover electrics, lead, termites and septic tanks, they do not cover structure. Tim Swannie, of buying agency Home Hunts, agrees: “A British client bought a stunning hill-top villa property in Provence. Wrongly assuming their mortgage lender had carried out a structural survey (not the case in France) they were dismayed when cracks started appearing, and it cost €60,000 for the property to be underpinned.” A survey costs €1,000-€1,500 (find one via the French section in the RICS website).

Neglecting inheritance advice

In France, there are many differences in the succession laws and estate taxes to those that apply in the UK, so you could get caught out if you don’t take advice. “For example, if you want to gift your home to stepchildren, there would be inheritance tax of 60pc to pay, as there is no bloodline,” says Atkin. There is also the fact that children are “reserved heirs” who are entitled to up to 75pc of the deceased’s estate, and a spouse would not be able to solely inherit their partner’s assets on death.

Underestimating renovation costs Too many people run out of money and cannot finish a project – or a swimming pool, or barn conversion for a gîte doesn’t get built. “Before committing, get quotes for works; your estate agent should introduce you to certified or accredited artisans,” says Douglas Hines, of agent Beaux Villages. “The cost of materials has increased by more than 25pc in three years – a major renovation is roughly €1,500 per sq m.” A common refrain is “double the budget and make friends with the mayor” when about to renovate.

Not selling UK home on moving

Many will think it is good sense to retain their UK home in case la belle vie backfires, but they are not aware that they could get stung for hefty capital gains tax (CGT), as rules in the UK and France differ substantially.

In normal circumstances, no tax is due on the sale of a main home in the UK, if it has been occupied as such throughout, says Jason Porter, of financial adviser Blevins Franks. “France, on the other hand, only exempts a main home from CGT where the property is the habitual and actual residence at the time of sale.”

Using a visitor visa – then working

Getting the right visa for your move to France is crucial now that one is required for stays of over 90 days. If you go on a visitor visa with the intention of working remotely, operating a gite or starting a self- employment activity, it is considered visa fraud, say Allison Grant Lounes and Kimberly Mousseron,of Your Franceformation, a relocation agency. That could get your visa revoked, your renewal refused or lead to serious tax consequences. “You should apply for the visa that fits your long-term plans – work with a professional to identify the right visa type,” they add.

‘A common refrain is “double the budget and make friends with the mayor” when about to renovate’

Not taking some of your pension with you

Some people think they should leave their pension in the fund to grow. Most UK pensions allow scheme holders to take 25pc of the fund as a lump sum at age 55, and as a UK resident, this would normally be tax-free. “Take that 25pc out before you leave the UK,” advises Porter. “Because if you wait, France can tax that at 25pc – under the double taxation treaty with the UK, France has taxing rights on pensions. You may also have to pay French social charges on the amount received.”