French Home Business Mortgages allow you to combine an income with a better quality of life.
For some, the idea of moving to live and work in France is a lifelong dream. Specialist magazines are full of success stories about people who have taken the plunge. With French jobs are hard to come by why not work from home? Hence combining your home and business can give you a great lifestyle which puts you in control. French home business mortgages are the smart answer.
Finally, choosing a broker that understands French home business mortgages can save you considerable frustration. Best French Mortgage has the experience to find the right specialist lender for French home business mortgages.
French Home Business Mortgages or Commercial Finance
There is a big difference between French home business mortgages and French Business Finance.
French home business mortgages are only available to borrowers with outside income. Thus your use of the new property for business purposes must be incidental.
French home business mortgages are often the right answer for people wishing to transition to semi-retirement in France.
French Home Business Mortgages FAQ
- You continue your normal job and current home, but intend to set up a B&B in your French house which your partner will run in parallel. Is this allowed? Yes – because you have separate continuing income to fund the repayments on both houses. The B&B is ancillary.
- You are an established consultant and intend to set up a prestigious home office in an outbuilding. Is this allowed? Yes – you have separate continuing income to fund the repayments from your existing client base. It is not a material fact that you will be working from home.
- You have an established business, running as a limited company with a need for extensive outbuildings. You decide to buy a property in France where you can co-locate your business to. Is this allowed? Yes – you have separate continuing income to fund the repayments. Your business is a separate legal entity (“personne morale” in French) which will continue to employ after you move. Provided you can meet the banks mortgage conditions using your spare space for the business is not material.
- You decide to continue your career, move to France and start a new life. The plan is to set up a new business which you will start after you arrive and run from home. If the business succeeds you plan on giving up your old career later. Is this allowed? Yes – but remember you will still have the mortgage repayments to make if the venture fails.
- You decide to give up your career, move to France and start a new home business when you arrive. Is this allowed? No – you will cease to have an existing income to repay the mortgage from. Read our French Business Finance page if the project which will be your sole source of income.
Choosing a Suitable French Property
The first step for all French home business mortgages is to find a suitable property. Remember, location is vital to profitably serve your target market.
Many people prefer to start with a clean sheet and convert an old property. For example, converting an old farm into a gîte complex.
Others prefer to search for an existing business with potential. For example, finding a failing small country town hotel with a new nearby golf course.
Today, most guests want private bathroom facilities and few older French properties offer en-suite bathrooms with every bedroom. With old hotels, you may need to halve the number of bedrooms to upgrade the accommodation. For example, sound insulation may be vital for visitor comfort.
The duration of your guests’ stay will be important. As a main holiday destination, you will need features like a swimming pool and a BBQ area. For short stays a residents’ lounge or terrace may be enough.
A gîte complex is a collection of separate letting units gathered around a central focus, such as a courtyard. For example, you will develop the complex from a collection of refurbished cottages or farm buildings.
You may have sufficient funds to buy the property, but not sufficient funds to finish the project. You risk making your visitors feel that they are staying on a building site. Definitely bad for repeat business.
By using a mortgage, you will preserve your own cash until the rental income is well established.
Firstly, internet based businesses do not need expensive property. Consequently, their low costs make them very profitable and attractive to lenders.
Hence, don’t assume a French home and business is dependent on physical infrastructure. With new technology, you have more options. Broadband is now widely available across France.
Secondly, French home business mortgages for technology based businesses are not difficult to arrange. French lenders like them because the business often just needs a small office and storeroom. They can resell the property easily if needed.
Do you have the right to live and work in France?
EU citizens have the right to live and to work in member countries and to move between them. Third country nationals have no such automatic right, whether they come from UK, USA, Australia, Peru or other non-EU countries. If you’re planning to move to France full-time we recommend that you check the French immigration requirements depending on your nationality and what freedoms your government has negotiated. Property ownership will not give you right of residence in the property. If you’re planning to work or run a business you need to check your right to work in France too, this is a separate formality.
Finally, read our Ten Must Knows page for more information.