Financing a renovation in France
Falling for a French property that needs work is common, especially in the countryside. The good news: you can usually fold the renovation into your mortgage, rather than taking a separate loan. Here is how it works, and what an overseas buyer should plan for.
General information. This is not an offer of credit or personalised advice, and no rate is guaranteed. Yann Nachtrieb, registered mortgage broker (COBSP) and insurance broker (COA), and financial investment adviser (CIF), ORIAS no. 26009903.
One loan, not two
When you buy a property to renovate, the simplest route is to add the works budget to the amount you borrow. You finance the purchase and the renovation with the same mortgage, at the same rate, usually better than a standalone works loan, and the long term of a mortgage spreads the cost of the works. One rate, one monthly payment.
The bank then asks for quotes to justify the works budget, and the renovation funds are typically released in stages as the work progresses.
Why quotes matter
Quotes from registered French artisans are the key document. They put a figure on the works and reassure the bank that, once renovated, the property will be worth what you borrowed. Serious quotes beat a rough estimate. If you plan to do work yourself, banks usually finance materials against invoices, rarely the labour you provide.
For an overseas buyer, lining up artisans and quotes takes a little longer from a distance, so start early.
Renovation financing at a glance
| Point | In short |
|---|---|
| Structure | Works folded into the mortgage |
| Evidence | Quotes from registered artisans |
| Release of funds | In stages, as work progresses |
| Own labour | Materials financed on invoice, not labour |
| Deposit (non-EU non-resident) | often 20 to 30% |
General, indicative pointers that vary by bank and project. Nothing guaranteed.
The bank looks at the finished value
A bank will weigh the price plus works against what the property should be worth once renovated. A realistic, well-documented project reassures; an over-ambitious budget on a modest property raises questions. Energy-efficiency works may also open the door to specific aids. Building a coherent purchase-plus-works plan is exactly where a broker helps before you commit.
Frequently asked questions
Can I include works in my mortgage?
Usually yes, for works linked to the purchase. It is normally cheaper than a separate works loan and spreads the cost over the mortgage term. The bank will ask for quotes.
Will the bank finance my own labour?
Rarely. Banks tend to finance materials against invoices, not the labour you carry out yourself. Professional quotes are financed more readily.
Do renovation works increase the notaire fees?
No. Notaire fees are based on the purchase price, not on works financed by the loan, so adding works to the mortgage does not raise those fees.
Let’s price purchase plus works.
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