Debt on French Property: What to Do

If you own a property in France and are carrying debt against it, or struggling with repayments, you have three possible routes. Which one applies depends on your income and your tax residence, not on the value of your property alone.

This page explains each option honestly, including when none of them will work.

First, an honest distinction

There is a difference between lacking liquidity and lacking means.

If your balance sheet is strong but your capital is immobilised in real estate, you have a structuring problem, and it is solvable.

If your income no longer covers your obligations and your property is your only remaining resource, that is a different situation. Borrowing more will not solve it, and no responsible intermediary should arrange it. Be wary of anyone who offers to.

Read the criteria below carefully. They will tell you which case you are in.

Option 1: borrow against your property

A mortgage-backed loan lets you release cash from a property you own, to consolidate obligations, cover a tax liability, or restore breathing room.

You are eligible if you are a tax resident in France and live in France, your property is in metropolitan France and worth at least 300,000 euros, you want to borrow at least 100,000 euros up to 70% of the property value, your household income is at least 4,000 euros per month and at least three times the future monthly repayment, and the property is held in your own name rather than through an SCI.

Rate 5.7% per year, up to 25 years. Arrangement fee 8.5% of the amount borrowed.

Example. Property worth 300,000 euros, loan of 100,000 euros over 10 years. Monthly repayment 1,095 euros. Arrangement fee 8,500 euros, so you receive 91,500 euros.

The income condition is not negotiable. A partner bank will always verify that you can service the new repayment. If your income does not cover it, this option is closed to you, whatever your property is worth.

Option 2: refinance an existing loan

If your difficulty comes from an existing loan whose terms no longer fit your situation, refinancing may extend the duration and reduce the monthly payment. This is a recalibration, not a rescue.

See refinance your property in France and equity release vs remortgage in France.

Option 3: sell with an advance

If you do not meet the income criteria, or if you live abroad, and you are selling your property or intend to sell it, a deferred-price sale may apply.

The property is sold to an investor at an agreed price below market value, and you receive the funds immediately. When it is resold on the open market, you receive the difference, less the investor's fee.

It is assessed on the property, not on your income. Your country of residence is not an obstacle, and it can be structured on a property held through an SCI. The property must be in metropolitan France and worth at least 300,000 euros.

This is the route for owners whose income cannot support a loan but who hold real value in a property they are prepared to sell. See the deferred-price sale simulator.

Get Your Equity Release Assessment

If enforcement has already started

If a creditor has begun enforcement proceedings against your property, the timeline matters enormously. Options narrow at each stage, and once a judicial sale is scheduled, very little remains possible.

Act as early as you can. See how to stop foreclosure in France.

Why selling under pressure costs you money

When time pressure rises, selling looks like the simplest path. But a forced sale means discounted offers, weaker negotiating leverage and limited buyer competition. Property is a long-term asset, and compressing its sale timeline can undermine years of appreciation.

If your property is already on the market and not moving, see what to do if your property is not selling in France and need cash urgently in France.

What none of these options can do

They cannot create income you do not have. They cannot make a property worth less than 300,000 euros eligible. They cannot make a non-resident eligible for a loan.

If you are in genuine financial distress, in France you can approach the Banque de France, which handles over-indebtedness procedures for individuals. That is a different route from anything described here, and for some situations it is the right one.

About PraxiFinance

PraxiFinance has specialised exclusively in property-backed finance in France since 1990, with offices in Paris and Nice. The firm is registered with ORIAS under number 13005512 and operates within the regulatory framework of the ACPR.

It processes more than 4,000 financing requests per month. An eligibility assessment is free and takes a few minutes.

Call +33 1 85 09 70 40.

Request Equity Release Support

FAQ

Can I borrow more to repay existing debt?

Only if your income supports the new repayment. Your household income must be at least 4,000 euros per month and at least three times the monthly payment. Otherwise the answer is no.

My property is valuable. Is that enough?

No. Property value alone is never sufficient for a loan. Income is assessed in full.

I live abroad. What are my options?

A mortgage-backed loan is not available to you. If you are selling your French property, a deferred-price sale may apply.

Should I sell my property if the debt feels heavy?

Not necessarily, and not in a hurry. A forced sale reduces the price you obtain. But if selling is the right decision, a deferred-price sale lets you access funds before completion.

What if none of these options apply to me?

If your income cannot support any financing and your property does not meet the criteria, none of these solutions will help. The Banque de France over-indebtedness procedure exists for exactly that situation.