Re: Keep a house here or not?

Finding/Owning French Property

Keep a house here or not?


snapper 03/05/2008, 16:58

Hello,

I have a holiday home in Dept 86 with no mortgage and want to move out permanently in a years time on my own as my children are now grown up.

I have many friends - both French and British out there.

My question is funding my stay and would like advise please.

1. I could rent out my house in London to cover the mortgage and have around £400 a month to live on.  I am worried in case there are some months when the house is not rented and not being able to cover the mortgage.

2. I could sell up here, pay off the mortgage which is not too large, buy either a 2 or 4 bed gite to run and invest a sizable amount - around £100,000 and hopefully have enough income from that each month to live.

Look forward to any of your thoughts.

 

Re: Keep a house here or not?


sunshine 2 03/05/2008, 18:23

Cost of health care will be an issue for you and may prove prohibitive. Neither of those options sound as though they will generate sufficient income unless you are of retirement age will get an E121 to get you into the health system.  If not then you will get an E106 for up to 2 yrs (the very max is 2 yrs 5 months if perfectly timed) as long as you have been working in UK and paying NI - then you will need costly private health cover until you have been legally resident in France for 5 years.  The regulations are also that you register at the prefecture within 3 months of moving to France, and demonstrate that you have sufficient resources not to become a burden on the State plus have health insurance (an E106 is fine for starters if you have one) and then get a titre de sejour which will give a date on which you started your residence.  Whilst the prefectures do not yet seem to be geared up with the right paperwork to issue titre de sejours, once they get into action I am not sure that an income of 400 pounds sterling per month would be considered 'sufficient'.

With the E106  (or an E121)you will only get the standard health cover of 70% of your health costs, so you can take a risk and pay 30% costs yourself or have the outlay for top up insurance to cover the 30%.  I mention the latter just so you can factor that cost into your calculations.

Re: Keep a house here or not?


maude 03/05/2008, 19:48
Do NOT part with your property inUK under any circumstances- this is our regret after 6 years of living here full time.We now have no option financially but to stay put or move locally due to the financial situation generally.If I had my time again,we would have rented out uk house,remotgaged or sold my body for medical research rather than be committed here forever.Not too much to complain about but do find life as someone said months ago,"life in France is an open prison"The world ends sept 1st,shutters shut until june next year unless the drinking sessions among other Brits,or the "aperatifs" with the locals are your scene.C.est la vie!!!!!    Maude
Ps.  Many people we know do in fact struggle financially with the gite ,B&B scene due to the very short season of holiday makers ,unless you are in an exceptionally popular house hunting area.We seem to be, here in the S.Vendee, but again, it is very competitive for little reward-the market is awash with gites etc.Good luck in your decision,hope it works out.

maude

Re: Keep a house here or not?


sweet 17 03/05/2008, 20:05

If you are not of retirement age, I honestly don't think that running gites and your capital sum of £100000 will generate enough income to live on.

If you are of retirement age, however, and have a pension as well as the gites and the interest from your capital sum, then it is feasible.

Keep your options open.  Why not let your property in London and rent yourself something here for a period of time to get the feel of things?

It's all very well somone telling you how much you need to live on.  At the end of the day, you're the only person who can work out how much you need for the type of lifestyle you want.

Re: Keep a house here or not?


woody234 03/05/2008, 20:45
snapper wrote "I could sell up here, pay of the mortgage" do you mean in london, also isnt the market flooded with gites to rent out, would you make more money renting your house out in london than a gite in france plus you can go back to the uk for medical stuff rather than paying french health care insurance

Re: Keep a house here or not?


Bugbear 03/05/2008, 20:48

 woody234 wrote:
plus you can go back to the uk for medical stuff rather than paying french health care insurance

I hope you've got your tin hat on Woody..................Woot! [:-))]


"Life is Short - Forgive Quickly - Love Truly - Laugh Uncontrollably"



Re: Keep a house here or not?


Trying 03/05/2008, 20:57
 Bugbear wrote:

 woody234 wrote:
plus you can go back to the uk for medical stuff rather than paying french health care insurance

I hope you've got your tin hat on Woody..................Woot! [:-))]

Allso lets hope its a night off for the watching eyes.

Re: Keep a house here or not?


snapper 03/05/2008, 21:25

Thanks for all your replies.

I have another 10 years before I retire.

The mortgage is on the UK house. The French house was bought outright some years ago.

I know lots of people say keep a base in the UK, rent out the house but if I do that I am worried in case there is a period of a month or more between one rental contract and the next one and not being able to pay the mortgage.

My fixed rate mortgage ends in 2010 so I also anticipate I be paying more at a higher rate after then.

There are not many Gites in our area - we always had trouble getting into a few in the locality before we had bought the French house.

We have gotten to know the French owners of a Gite who is often booked up most of the year, mainly with French people.

One Gite, owned by English is not doing as well.

 

Re: Keep a house here or not?


woody234 03/05/2008, 21:42

whats wrong with going back to uk for medical stuff rather than paying french health care insurance, also i have no tin hat but i have a pillow instead also yes I have watching eyes

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