A French mortgage for new build projects
Building a new home from scratch with a French mortgage is almost certainly to be a cheaper option than a conversion project.
A new-build project for a three-bed, two-storey house would cost on average, it is estimated, about 150,000 euros compared to 170,000 euros for a similar renovation.
For people who were planning a conversion to create their dream home abroad, the current economic downturn and the poor performance of sterling may have blown the carefully costed budget out of the water.
As a result, choosing to develop a new build could be the ideal alternative solution, paid for by obtaining a French property mortgage.
French mortgages for new build properties
It is important to select an appropriate contractor and to obtain legal permissions for land that has been fully investigated before construction starts.
But new build benefits can outweigh any potential disadvantages. They are often predictable time-wise and do not come with many problems suffered by old buildings such as, say, subsidence, dry-rot or discovering asbestos.
And it is possible to select a new build in many options and styles. House-buyers may prefer a replica appearance or modern.
A spokesman at the Alliance French Property Group said, “A lot of UK clients are looking for a traditional appearance and character but this can be built in using traditional materials.”
Also, new builds are mostly cheaper to run with better insulation. Maintenance tends to be lower too and they enjoy a 10-year structural guarantee.
Tax incentives are often available for building new properties. And another advantage is saleability. According to the Alliance French Property Group, the French prefer modern homes.
Choosing a new build French mortgage
Deciding to buy a property and mortgage in France can be a stressful, complicated business. Conti, the UK’s leading provider of loans for property abroad, specialises in making the whole process straightforward and as trouble-free as possible.
0800 970 0985