Renovating an old property

 

The myth about French property is that any derelict or dilapidated building can be transformed into an architectural masterpiece for all to admire. Unfortunately this is not always the case. Owing to the myriad restrictions imposed by the national and local authorities, many beautiful buildings with great potential are helplessly crumbling away. It's therefore essential to enquire what restrictions may apply to the property  -and the first step to find out what is likely to be allowed is through a Certificat d’Urbanisme.

 

 

 

There are two types of certificat d'urbanisme:

 

* 'le certificat de simple information' or certificate of information which, in the absence of a precise building project, just gives information about existing town planning rules on the property. It does not, however, indicate whether the land can be built on.

 

* 'le certificat opérationnel' or operational certificate, which must be requested if a specific building project operation is planned on the property. This document is essential if you are planning to buy land or to build on land. It allows you to know, before buying, if you would be able to realize your construction project.

 

The certificat d'urbanisme will indicate the following information:

 

* Town planning arrangements: this includes details about local authority town planning, general town planning regulations, and information about aspects of sea-side coast or mountain laws that might be applicable in the area.

 

* Administrative limits on rights of ownership such as planning restrictions or the existence of pre-emption rights.

 

* Information about existing or future public amenities (water, electricity, sewerage, etc.) serving the land.

 

* Property taxation applied to the property.

 

* Indication if the land is located within a pre-emption zone.

 

The certificate d'urbanisme does not give authorisation to build - it does not replace the building permit - but is needed if you plan to make any changes to a property and/or apply for a building permit.

 

 

 A Déclaration de Travaux, or declaration of works, is a basic form of planning permission which may be all you require, depending on what you are planning to do with your property. This declaration is designed only for minor changes that can be made without recourse to a full planning application. Examples of such minor alterations might include internal alterations, such as adding extra internal walls to split a room, the installation of a swimming pool (under 20 square metres or above ground), the erection of a garden fence, the addition of a small terrace area, and the building of a temporary structure such as a garden shed or a small workshop or garage extension.

 

 

The Permis de Construire is the full permit to build or develop in accordance with the law. It is absolutely necessary should you wish to make any alterations or additions to your property that will affect its taxable value. Changes that affect the look of the property from the outside may be significant, such as installation of windows and doors where none previously existed, or extensive alterations to the roof. The installation of a septic tank, the construction of a large extension or outbuilding, and any change to the use of a building, such as converting farm buildings into residential accommodation all require a Permit de Construire. Once more, this is in no way intended to detail all the circumstances that require full planning consent, but aims simply to give an idea of such circumstances. It is important to remember that frequently in France local regulations prevail, and therefore it is impossible to give definitive conditions as many are dictated by local authorities and exact locations.

 

 

 

Throughout this process it is advisable to discuss any questions you might have with the local council regarding which planning permissions you need. As stated above the rules differ from one provence to the next so local knowledge is vital. The Conseil d’Architecture d’Urbanisme et de l’Environnement (CAUE) offers a useful and free planning and architectural advice service and there is one based in every French county. The CAUE cannot be used to prepare and submit a planning application, but they can be a most useful source of preliminary advice for those contemplating a building project.

 

 

Unless your property in France is your principal residence you will be liable to pay Capital Gains tax. There are very few ways to avoid this tax other than to live in the property as your principal residence and to be a French tax payer for at least two years. Another way of reducing your liability is by owning the property for more than five years. Every year after this you will pay 10% less tax every year, so that after fifteen years you would no longer be liable to pay Capital Gains tax. Capital Gains tax for French residents is now set at 16% plus 11% social tax whereas non-European residents will pay 33%.

 

 

To protect yourself against the possibility of a crippling inheritance tax it may be worth considering setting up a type of limited company known as an SCI. The only way to be sure of your own liability is to take professional advice, preferably with a local expert who will be aware of all current legislation relevant to your situation.

 

 

Sadly many building and renovating projects hit the buffers and homeowners can find themselves embroiled in costly legal battles due to disputes with building contractors. In an attempt to minimise this risk and protect yourself from legal battles below are a few points to consider :-

 

You may consider the merits of engaging the services of a Project Manager to oversee the building work and manage the project. At the root of numerous court cases is a falure in or lack of communication between the different trades and clients . An effective project manager should ensure your build runs smootlhy avoiding costly time delays and disputes. They will request quotes from the various tradesmen will liase with them directly and you the client to ensure the project runs smoothly and crucially on budget.

 

Part of a Project Mangers responsibility will be to ensure deadlines are adhered to that every change of plan is agreed and costed as inevitably there will be changes during the course of a project. Ensure the contractors provide proof of their insurance cover.

 

 

By law you must pay the VAT on renovations. You are paying for a 10 year guarantee and your builders will pay more attention to their work

 

 

If you use subconstractors it would not be recommended to pay them directly without following a process of agreeing a schedule of works, checking insurance cover, a reference check from past clients . This will not guarantee a problem free relationship as frequently the subcontractors will subcontract to others but may offer you a heightened level of protection and piece of mind.

 

If you are considering hiring labour to work on your house in France you need to be aware of the SIRET system to ensure that you are emplying people who are permitted to wrok in France legally.

 

All business registered in France as well as public bodies are assigned a SIRET number for identification purposes and this will be made up of 14 digits. For verification you can access information at www.infogreffe.fr

You are only entitled to insurance protection if you use a registered French company to work on your property. If you use a foreign or non-registered company you will not be able to offset the cost of the work against capital gains tax should you sell the property. There are also financial penalties for employing unregistered companies. Further information can be found at www.sirene.tm.fr