A NEW LIFE ABROAD. (Moving to France to Live?)

Member Name: thingywhatsit

Product:	Moving to France to Live?
Date:	09/03/06 (2030 review reads)
Rating:

Advantages: Dreams can happen if planned correctly.

Disadvantages: Many fail through lack of planning and knowledge.

I have a passion for my life in France, and am writing this because, over the past seventeen years, I have seen changes in the kind of people coming to start a new life in Rural France. Whilst I cannot cover what town life would be, the majority of Brits do chose rural France for their retirement, and many young people come here thinking that the quality of life and standard of education is better for their children. When I first came here, the kinds of people that came here were the creative types, looking for a new life in a different country and using their skills to create the kind of homes that they wished they could afford in the UK.

With the changes, largely influenced by television programs which seem to be sending out the message that secondary homes in France is “the way to go”, many burn their bridges in the UK, selling up property that has a good value, and opting to buy a home in France, without really thinking about the many issues that present themselves to a person wishing to live in a foreign country.

For the sake of ease for the reader, I have categorised my advice into separate sections, so that readers may easily find the information that they seek and which is relevant to their particular search for information. These are as follows :

1.Reasons for moving.
2.Adequate resources.
3.Language skills.
4.choosing a region.
5.Budgeting the purchase of a house.
6.Legal Differences
7.Capital Gains and Taxation Issues.
8.Preparing for your new life.



This may seem a strange topic, although I feel it is a very relevant one. I have personally known many people that come to France in an effort to improve their personal relationships, or perhaps to please one member of the family that is keener than the other. Others come here because they believe that the quality of life is better and the medical system in France much more suited to their needs. Here, I would mention that in my county alone, the increase in the number of old aged pensioners in the last year moving to France is alarming to say the least. Many come with the hope that France will fill their needs for peace and quiet, away from the stresses of life in the UK, only to find that the stresses put upon them by the move are greater than those from which they are moving.

I believe that a list of some sort would be a useful thing, and that knowing why you are prepared to move into a different culture, and leave your roots behind is extremely important because once you have sold your house in the UK, bought a house in France and perhaps used your capital for living expenses, the return to the UK becomes more difficult, as the house prices in the UK mean that in effect the only way of achieving the same lifestyle you had before you left would depend upon profit from your house in France.

Housing is not a huge investment in France, and as you will see from the legal section below does not have the same status as home owning in the UK. The market is going flat and rapidly, and the capital gains situation has also changed, which would affect people that buy multiple properties in order to make a living are finding this increasingly difficult.

Many times, I meet new English people that have arrived here and that tell me “I am going to start a gite business”. Many are unaware of the fact that the gite business in rural parts had outplayed itself, and if this is your intention, I would advise looking into what the current situation is in the part of France where you are considering a purchase. Businesses are not easy to set up in France, and here, doing your homework before parting with money is essential.

For younger couples with children who seek a better life for their children, I would suggest that it is extremely hard to get work, other than factory work, in rural France, without knowledge of the language. May young people come here with no idea of how they will earn a living, taking a chance on finding work amongst the British population and already the French are being strict about any business venture complying with French rules and being registered. If as a young couple, your knowledge of French is not good or non existent, how can you give your family the security that they need in a foreign country ?

Motives for coming have to be decided upon, and the pros and cons considered if disaster is to be avoided.

2.Adequate Resources.

People say that the cost of living in Rural France is cheaper. In some ways, it is. In others, it is more expensive, and overall the cost of living from my experience to any standard of comfort is the same here as in the UK.

Pensioners need to check their rights to medical cover from the Department of Social Security in Newcastle, and to their rights concerning pensions. These are important issues, and I have known people leave the UK before retirement, cross over to the French system, and find that what they have in effect done is to cut off their rights to a UK pension, and have no rights under the French system because they have never contributed.

Looking into whether you can afford to live in France is a major issue and one that should be addressed before parting with money on housing.

3.Language Skills.

All too frequently, I find English people shouting at local people and calling them “ignorant” because they do not speak English. This is their country and if you decide to live here, you are in effect a guest in their country. Whilst there are ex pat communities in rural France, the problems that these are creating here is that the French are beginning to resent the English. It was bound to happen. It has happened, although this can be addressed by learning the language, even if your knowledge is basic. The fact that you tried is sufficient to win favour with local people

For pensioners and young people alike, the need for the language skills is so important. Older people moving to a new life in a foreign country often do not think that this is a time in their lives when health issues will kick in, and being in hospital in a foreign country can be very frightening indeed if you do not understand what the doctors are saying. Part of my life here is spent with people who have not learned the language, explaining what doctors and nurses are saying, and although I do it gladly, there will not always be a person available when you want them to be.

Not only does learning the language make this aspect of life easier, it makes the difference between starting a new life in a foreign country, and just being a Brit abroad. There is a vast difference, and I believe that without knowledge of the language, you are seeing only a small part of what rural France offers you, almost like a black and white picture. Language colours that picture and makes it complete.

4.choosing a Region.

There are many regions of France that are rural and offer beautiful scenery, a green lush countryside, or a grape vine laden landscape in the Southern parts of France. Here, I would advise that people check what the weather is like all the year round. Judging that you want to live somewhere from a holiday experience is not a good idea, as weather changes and can affect health. For example, here in Brittany where I live, six months of the year are rainy. This is the price we pay for living in lush green countryside. They go hand in hand. What this means from a health point of view is that Brittany is very damp in atmosphere, which affects arthritis sufferers worse than the UK. In the Southern parts of France, warmth is the issue, and I personally find that southern parts are very hot and unbearable in the Summer months. You are thinking of living in France 12 months of the year, and many people that come here are shocked by the weather conditions that greet them through the winter months. Consider the region and what it offers. Consider its suitability to your requirements and budget.

5.Budgeting for the purchase of a house.

A careful look at what you are thinking of buying is essential. Houses that need renovation are money pits. Believe me, times are changing. In the last year, rules have changed, and are continuing to be changed in line with European standards, and here cost is something to consider. By the end of this year, i.e. 2006, all septic tanks in rural France have to conform to the new regulations. This does come into your choice of house issue, as a new septic tank up to current regulations costs between two and five thousand pounds, dependent upon the size needed, i.e. Catering for guests etc.

When you visit France, the choice of houses available is enormous, and the charm of granite houses pulls ex pats like nothing else, although this is changing. Surveys are not required before parting with your money, so the only person you can depend upon is yourself, or a qualified person coming to France on your behalf. Look for everything. Budget costs. Ask at the local Mayors office for local workmen and get an idea of costs for work requiring to be done.

Many ex pats who find that the experience of living in France does not suit them return to the UK and when searching for houses, you can guarantee that if you are buying from UK people, the price will be more than if buying from locals. The reason for this is the UK perception that their renovation works adds value to the price of the house. In some ways, it does. In others, if the work was not correctly carried out, you can find yourself liable to put it right as and when regulations change. Check for wiring. One particularly bad thing to look out for is electrical wiring done by owners with UK plugs and wires. The likelihood of there being a Certificate of Conformity in a case like this are limited.

Ask estate agents what their percentage is on top of the price of the house. Ask what the total price is. Solicitors fees in France are notoriously high and will detract from what money you have left in your budget for renovation and improvement. Be aware also that agents should be reputable. That's a very hard thing to gage in a foreign country but it makes a difference financially. If a nice English person is offering you a package, then it is very likely that that package will cost you more than if you were to approach a solicitor direct. There are two fees in France from a solicitor, a negotiation fee and a legal charge. If, for example, you have negotiated the price with the owner yourself, this helps you in that you can reduce the fees that you pay the solicitor.

Total up possible repairs, estimate what these would cost to achieve, add on legal costs, and be aware of what the house will cost you before you sign an irrevocable legal document (although here, they have started a new thing whereby purchasers have a seven day cooling off period), which to my mind goes against the ways in which people should handle house purchase. If you are unsure, don't sign. The reputation that the UK newcomers are leaving behind them by signing whilst unsure and then canceling is annoying the French.

6.Legal Differences.

One of the laws here that the incoming UK population find strange is that since Napoleonic times, it has been made illegal in France to disinherit your children. The way in which this is dealt with by property law is that if for example you buy a house with your husband, and one of you dies, the house does not automatically go to the person who remains. It goes directly to the children or parents of the deceased. These are called “direct” inheritors. What this means to British people is in the case of marriages that have failed, and children from different marriages being part of one family, the confusion of the inheritance laws seems unfair to people choosing that their property be given to a particular child.

The way that the French have overcome this difficulty for house purchasers is that if you buy a property that will not realise more than a hundred thousand pounds (between two people – i.e. 50,000 each), you can take out a clause in the purchase documents called a Clause Tanteen, which means that the property is owned by both parties and that it will pass to the last one upon the death of the first, and does to a certain extent cover the problem for many. Another way around the law and in order to protect your partner is to make a will leaving the house to your spouse for the rest of their lives, after which time, the property will be split equally between the children.

The other way of dealing with it, and this is relatively new in France, is to sign a document using the Hague convention which allows a couple to own everything in equality. This for me is the best option and at 250 Pounds solves a lot of hassle, in that after the death of the first partner, minimal taxes are due to be paid, leaving the taxes to be taken by the government upon the death of both parties. This is a much fairer way to go, and this can be done after signing for a house, whereas a tanteen must be taken out at purchase, and cannot be brought into effect afterwards.

7.Capital Gains and Taxation Issues.

Many people have seen the programs on television about property developers and many Brits have tried to bring this notion with them as a means of income for their new lives in France, believing that by buying and renovating houses, they can make their living. Whilst this was true up until last year, the laws changed at the beginning of last year and adversely affect those Brits that believe there is still a living to be made from owning several properties.

We owned three houses, and were stung by capital gains tax and unearned income tax, and these were steep. The way this worked in the past is that with capital gains, you could keep all your receipts for work done, multiply it by three and use that figure to offset against profit. It worked, though what it encouraged was work done by unregistered workers. When they changed the system, the only bills that count against your profit are those given by registered workmen, and I actually see the sense in this and the reasoning behind it. Too many houses were being bodged and then sold on at expensive prices. It did not work and to address the situation, the French government cracked down.

If you own more than one house, one is counted as your principle residence, and the others as secondary residences. If you decide to sell any of them within a fifteen year period, you will be liable to pay between 26 and 33 per cent of your profit in capital gains, depending upon your particular circumstances, and this is deducted at the solicitors office at the time of sale.

With rental income, you can expect to pay a third of what you earn back to the French government, making this income a dubious one, unless you plan it right. Looking into these issues is important before signing for a house.

8.Preparing for your new life.

Having planned your move, having decided your reasons are valid ones, and having chosen your region wisely from a health and work point of view, there is light at the end of the tunnel. Life in France is a good life. Rural France has little crime, roads that are relatively easy to drive and traffic free. There is a quality that is unobtainable in the UK for many due to cost restraints, as here you can own large properties on huge plots of land, although making sure that what you buy suits your abilities to cope as well as your pocket is essential. Working the land is hard. I have four acres and could not handle more than that although many houses here will offer the option of more land. Think about what you want that land for before deciding.

Sort out your paperwork. Get the right forms sorted out, and if in any doubt about whether you will break ties with the UK, treat the first six months as holiday, and use your E111 or now equivalent for medical backup. That way, your options to go back to the UK and stay in the system are better.

Get to know locals. Here in order to help with your grasp of the French language you could actually offer a valuable service to a local child of helping with their English in exchange for them helping you with your French.

The life here is good and with careful planning and knowledge, you can have those dreams of a life in France fulfilled. I have and would never change it, although hit and miss information doesn't help you when you jump out of the frying pan into the fire.

If you decide to live here, may I wish you most of all success and happiness.

Rachel

Summary: A dream that needs working on.