Clé France

Client's Question:    I am hoping to move to Normandy / Pays de la Loire and work in managing holiday rentals. Can you please let me know how I would pay into the French pension system? And level of state pension after so many years? 

Much depends on how you are planning to work, i.e whether you will be self employed running a gite management business, or whether you will be an employee of such a business. If you are an employee, pensions are organised and handled by the Caisse Régionale d’Assurance Maladie (CRAM). The system operates on the principle that those who can no longer earn a living themselves are financed by contributions from existing workers and employers.

The two systems in the U.K and France have some similarities, in that the amount you are able to draw will be dependent on the number of years’ contributions. According to recent figures the average retirement age in the UK is 63.6 years, whereas in France this figure is 59.2, with only 15% of people between the ages of 60 and 65 still work. In France you can retire at the age of 60 but in order to qualify for a pension (up to 55% of your former salary) you need to have worked for at least 40 years. Under EC regulations, however, if you work, or have worked, in other EU countries you can combine contributions in order to qualify for a state pension here in France.

If it is your plan to be self employed, then your pension will be dealt with by different organisations. A good French bilingual accountant will be able to advise as to the level of pension you can expect to draw in France, based on the level and length of time of your contributions. A self-employed person should contact his/her professional body for more information.  

Blog submitted by: Sharon at Cle France.

Join the Cle France mailing list (look to the the left!) and be the first to find out about new property on the market and price reductions.

This week we had a bumper selection of Holiday Homes for you, from ones that are 'ready to move into' to properties needing some updating or renovating, but hopefully a selection that suited every budget. 

AND of course we had our usual small selection of properties NEW on the market around France that hopefully met everyone's taste and budget. We now have over 6000 houses for sale in France ready and direct for you to view with our agents.

Lower down the newsletter we also had a selection of houses for under 50,000 euros! 

Blog submitted by: Alex at Cle France.

Despite a poll last year claiming that the majority of french people believe there are too many foreigners in France, Interior Minister Manuel Valls has just announced new plans to make it easier to gain french citizenship. The multiple choice test has been scrapped, along with the requirement that applicants must hold a permanent job (CDD); neither is it compulsory to own a property in France. This latest decree marks a changing of attitudes within government departments towards immigration; in 2011 only 40% of applications were approved rising to 61% in 2013 to date. To qualify, foreigners should have lived in France for 5 years. Forms are available from your local prefecture.

Client's Question: “I’ve heard that when I buy a house I will get a survey report; what will this cover?”

When a property is sold in France, the owner is obliged to commission and pay for a set of ‘diagnostiques’, which cover certain compulsory elements of a property. These include reports on the presence of lead and asbestos, the condition of the gas and electrical installations and whether the property is at risk from environmental factors such as flooding. There will also be an inspection for the presence of termites, in those affected areas, generally south of the Loire. The ‘diagnostiques’ will also include the DPE rating, the ‘Diagnostique Performance Energetique’, which assesses the energy efficiency of the property.

It should be pointed out that these reports make no reference to the structure of the property, nor is there any onus on the part of the vendor to put right any anomalies noted in the reports. They are provided merely for your information.

Blog submitted by: Sharon at Cle France.

Client's Question: "I’ve heard that if I sign a ‘Compromis de Vente’ I will be obliged to go through with the purchase, is this true?"

The ‘compromis de vente’ is the initial sales contract drawn up either by the notaire or the agent in France. This is the most common form of sale agreement used in France, and will outline the terms of the sale, including such details as the price agreed for the property, the fees which will be paid to both agent and notaire and an expected completion date.

It is an important document, and can include what are called ‘clauses suspensives’: these will include terms which must be met before the sale can go ahead, so for example if you require a mortgage in order to complete the sale, this will be included here along with details of the amount to be borrowed, and the time needed to process the mortgage application and obtain the funds. Another example might be if you are buying a building which requires a ‘Certificat d’Urbanisme’ (outline consent to convert a farm building to a residence), it would be wise to include this as a ‘clause suspensive’.

The ‘compromis de vente’  will be signed by both vendor and buyer: the vendor is not able to back out of the sale once they have signed, but the buyer has a 7 day ‘cooling off period’, during which they can withdraw from the sale: this must be done in writing and by registered letter to the notaire handling the sale. Once the cooling off period has expired you are required to send your deposit to the notaire, usually 10% of the net vendor price. If you withdraw after this point (unless it is for reasons detailed in the ‘clauses suspensives’), you will lose your deposit, which would be used as compensation to the vendor, who still has the right in law to continue the proceedure and insist that the sale go ahead.

Blog submitted by: Sharon at Cle France.