Interest in Buying Property in France Surges as Pound v Euro Exchange Rate Reaches Four Year High

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This week saw the pound strengthen further against the euro and reach a high not seen since October 2008.

We have seen a significant rise in sales of French property this year to UK buyers wishing to take advantage of the surge in value created by the strengthening pound.

This week saw the pound strengthen further against the euro and reach a high not seen since October 2008.

£1.00 will currently buy around €1.274 which is a significant increase if you are thinking of buying property in France.

As an example, if you have a budget of £250,000 you would have had €282,500 to spend in Autumn 2008 while you would now have a healthy €318,500. At the higher end of the market some recent clients of ours with £800,000 to spend on a property in France were over €115,000 better off than they would have been four years ago. This additional purchasing power enabled them to trade up in terms of location which also helps long term investment value.

Allied to this there are still many excellent deals to be had in the French mortgage market. You can currently get a variable rate from 2.8% with an 80% maximum loan to value. 20 year term, fixed rate French mortgages are available from 3.3%, again with an 80% maximum loan to value ratio. Indeed a maximum loan to value of 90% is available - this can include estate agent’s fees but not Notaire’s fees.

As an approximate guide, your current monthly outgoings (including the monthly repayment on your new French mortgage) should not exceed one third of your gross monthly income. A percentage of any rental income you receive on your house in France can be considered.
Trevor Leggett, Managing Director of Leggett Immobilier, comments:

"We have seen a significant rise in sales of French property this year to UK buyers wishing to take advantage of the surge in value created by the strengthening pound. Recent research from BNP Paribas showed that property in France is seen as something of a safe haven in these turbulent times, indeed 97% of respondents said that they saw the long term investment potential for houses in France as very good. We have a listing of over 7,000 houses for sale throughout France and we firmly believe that there are still plenty of bargains to be had. We have seen particularly strong activity at the higher end of the market with prestige property proving especially popular, we have excellent teams in the Alps and on the Riviera, both of which are traditional destinations for UK buyers.

Last year Leggett Immobilier saw our sales increase by around a third throughout France and, thanks to the excellent exchange rate and availability of some terrific mortgage deals, this year we are certainly heading for more of the same".

About Leggett Immobilier.
Leggett is an independent, family run business based in France with a network of over 120 fully trained commercial agents covering most of the country. Leggett offers an unrivalled mixture of local knowledge and national expertise, professional service and full after sales support.

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Joanna Leggett
LEGGETT IMMOBILIER
+33 (0)6 50 13 53 08
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