Buying Guide Details

Buying Property in Alsace/Lorraine

Where to buy property in Alsace/Lorraine

These two regions in northeast France, close to the German border, offer the overseas property home a huge variety of property. Lorraine is famous for its nature, despite its industrialised areas, though it has not been popular with foreign property investors and consequently prices for property in Alsace/Lorraine are low. Nancy is perhaps its best-known city, with a UNESCO World Heritage public square, architecture reflecting its prosperous history and a busy student population today.

A property in the Vosges mountains will have breathtaking views in the summer and excellent skiing in winter, and is not yet a property hotspot. Epinal is the departmental capital and a good place to start looking for a property in Alsace/Lorraine. Also worth noting when considering buying a property in Alsace/Lorraine is that a high-speed train (TGV) link form Paris is due in the Vosges in 2007.

Property prices in Alsace are higher-than-average due to its excellent connections to Paris and the rest of Europe and the fact that, in regional capital Strasbourg, it is at the centre of EU politics. There are still huge expanses of rural land, lakes, vineyards and unspoilt countryside though property renovation opportunities are rare.

In the south, Mulhouse is a fine city and regional economic centre. Property prices in Mulhouse are above the average for this region but make a good long-term property investment. TGV links are planned for this part of France, and increased accessibility can only be good news for the property owner here.

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The Process of Buying Property in Alsace/Lorraine

• Once the buyer has found a property in Alsace/Lorriane and made an offer, both parties must sign a compromis; a legally binding agreement setting out all terms involved
• Financing will have to be sorted out by this stage as details regarding any loans must be clearly outlined in the compromis
• There is then a seven-day cooling-off period, which gives the buyer (but not the seller) the opportunity to back out of the deal without penalty. A 10% deposit is then required and the notaire then carries out all checks on the property (for clean title, wood rot, etc)
• Before the signing takes place, all funds must be transferred to the notary’s account. Failure to do this on time could mean the buyer loses both the property and the money
• If the buyer is not able to visit the property before signing the final contract, a representative should do so on their behalf to make sure that everything is in order. The contract clearly states that the property is accepted in its condition on the day of sale
• Finally the acte de vente is signed in front of the notary, and the sale is complete.

Homes Overseas Property Club

Homes Overseas has joined forces with a collection of IFA specialists to form the Homes Overseas Property Club (HOPC), designed for existing and prospective overseas property homeowners.

The Club – which has access to international lawyers in no fewer than 43 different countries - has been set up in order to guide people through some of the various issues relating to buying and maintaining a property overseas. It offers advice on a range of topics, including financial, legal, insurance, taxation, property management and foreign currency matters.

For further information please telephone 0845 838 7142 or email info@homesoverseaspropertyclub.com

Fees & Taxes

• Vary hugely depending on the region and type of property, but set aside 12 to 15% of the selling price
• Allow around 6 to 8% per cent for notaire’s fees. This includes stamp duty, which varies from 0.6% for a new-build to 6% for any property over five years old
• Agents’ fees vary greatly and can be anywhere from 4 to 15%. Around 7% is the most common amount, but check when looking in agent’s windows for the letters FAI after the price – this indicates that their fees are already included
• IVA (VAT) of 19.6% is applicable on most fees and taxes, but is avoided on leasebacks. The price of new-build properties usually includes 19.6% IVA, but always verify this from the start
• If a property in Alsace/Lorraine is sold on within two years, capital gains tax is likely to be in excess of 33%
• Transfer tax varies greatly, but for properties over five years it tends to be around 7%.

Getting there

There are direct flights from the UK to Strasbourg from Air France. The south of region may be more quickly reached via Basel in Switzerland.

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