I’m already a property owner, so how do I go about purchasing my new property
The financial arrangements for your new purchase will differ depending on whether you’re buying a second home or moving to a new principal residence. In the latter case, the ideal solution is to make your sale and purchase on the same date, but if this is not possible, we have some advice for you on how to buy before you sell.
If you’re financing a second home
Managed to find the second home of your dreams? Funding the purchase is simple: all you need to do is take out a new bank loan. Discuss your plans with your bank to make sure you get the best possible deal for your needs.
Bear in mind though that your second home will be taxed differently from your principal residence:
Bear in mind though that your second home will be taxed differently from your principal residence:
- It will not attract exemption from property tax for senior citizens of limited means, or the reduction in taxe d’habitation (residential tax) for dependants,
- Revenue generated from holiday letting is taxable.
If you’re selling to buy
If you already own your own home and plan to move to a new one, the ideal way forward is to sell your existing home and use the proceeds to buy elsewhere.
However, it is often difficult to synchronise the sale with the purchase. Where this is the case, special property loans, such as bridging loans, can simplify the financial arrangements between your purchase and the sale of your current home.
However, it is often difficult to synchronise the sale with the purchase. Where this is the case, special property loans, such as bridging loans, can simplify the financial arrangements between your purchase and the sale of your current home.
How to buy before you sell
By taking out a bridging loan. How does it work? Well, the bank advances you the money you need to buy your new property on an interest-only basis. You repay the capital only once you have sold your previous property.
There are two types of bridging loan available, depending on the amount you want to borrow for your purchase.
Worth knowing: a bridging loan is a short-term arrangement granted for a maximum period of 2 years.
Your Bouygues Immobilier advisor can help you find the best bridging loan for your circumstances.
There are two types of bridging loan available, depending on the amount you want to borrow for your purchase.
- The “dry” bridging loan, which is a simple advance of funds. If you are buying a property that costs the same or less than the one you are selling, then you only need an advance to “bridge” the gap between selling and buying, rather than an advance twinned with a standard mortgage. Once your property is sold, the bridging loan is repaid with no penalties for early repayment.
- Twinning the bridging loan with a long-term mortgage allows you to buy a property at a higher price than the one you are selling. To finance your new purchase, you will need a bridging loan coupled with a standard long-term mortgage.
Worth knowing: a bridging loan is a short-term arrangement granted for a maximum period of 2 years.
Your Bouygues Immobilier advisor can help you find the best bridging loan for your circumstances.