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French property

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    French property

    I have been very privileged enjoying visiting my mums apartment in South West France over the last few years - she is now wanting to sell-up and buy a property elsewhere in another country.

    The problem is that I really like the apartment and the area, so I am seriously thinking about either buying her apartment or another similar one in the area. Rental income is good - the season is short (May to September), but it keeps its nose clean and has some profit, so a worthy investment.

    If I did buy the apartment I would be doing just that as she needs the money for her next purchase, but, I am wondering if there are any tax incentives or pitfalls around the best way to invoke the transaction? It is worth around 200K Euros. I would be stumping up around 100K, re-mortgage my current house worth nudging on half a mill, with just a £50K mortgage, so increassing the mortgage to around £130K to enable a cash transaction. I have seen another apartment I also like for 150K Euros (around £135K), and would be just about as happy with both is there was an incentive either way.

    #2
    Can you handle French mafia?

    Comment


      #3
      Originally posted by AtW View Post
      Can you handle French mafia?

      Just need to add a tweak of garlic.....

      'Like rabbit, but sweeter': the verdict on eating squirrel - Telegraph

      Comment


        #4
        Originally posted by Wilmslow View Post
        I have been very privileged enjoying visiting my mums apartment in South West France over the last few years - she is now wanting to sell-up and buy a property elsewhere in another country.

        The problem is that I really like the apartment and the area, so I am seriously thinking about either buying her apartment or another similar one in the area. Rental income is good - the season is short (May to September), but it keeps its nose clean and has some profit, so a worthy investment.

        If I did buy the apartment I would be doing just that as she needs the money for her next purchase, but, I am wondering if there are any tax incentives or pitfalls around the best way to invoke the transaction? It is worth around 200K Euros. I would be stumping up around 100K, re-mortgage my current house worth nudging on half a mill, with just a £50K mortgage, so increassing the mortgage to around £130K to enable a cash transaction. I have seen another apartment I also like for 150K Euros (around £135K), and would be just about as happy with both is there was an incentive either way.
        Be aware of the recent changes in SDLT etc. for owners of multiple properties. Given that the property is overseas, I'm not sure that you'd be liable for the 3% surcharge if you decided to move, but it's worth checking (the way HMG typically operates, chances are, you would be caught ).

        Comment


          #5
          Sounds like a perfect way to buy. I doubt there are any tax incentives.
          As it’s a purchase from your mother you should be able to conduct the transaction in sterling rather than euros further simplifying.
          You’ll need to engage a French solicitor and for that I’d recommend initially talking to who your mother used when buying. It’s likely you’ll need a different solicitor due to conflicts of interest but get your mother to ask that question.
          See You Next Tuesday

          Comment


            #6
            I suspect the main benefits are for your mother, who doesn't have the cost and hassle of engaging an estate agent and having randoms from Home or Away bitching about stuff to try and look like they're not scamming a free holiday.

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              #7
              Is there a Gallic shrug smilie somewhere I can use?

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                #8
                Originally posted by barrydidit View Post
                Is there a Gallic shrug smilie somewhere I can use?
                Not quite a smilie....

                Comment


                  #9
                  Que ferait la Suity?
                  'CUK forum personality of 2011 - Winner - Yes really!!!!

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