Many homeowners in France hold substantial wealth in real estate but face limited cash flow. Conventional banks often decline applications from retirees, expatriates or self-employed professionals whose income appears irregular. Yet solutions exist under French law to free part of this capital safely. PraxiFinance, established in 1990 with offices in Paris and Nice, has dedicated over three decades to regulated equity-release operations supervised by notaries. Our mission is to transform property value into available liquidity without requiring clients to sell or move.
Understanding equity release under French law
Equity release is a legal mechanism that converts the value of your home into liquid cash while you remain owner and resident. It is neither a sale nor a speculative loan: the transaction is authenticated by a notary and recorded in the national land registry. Ownership never changes hands; the mortgage or sale clause only registers a financial claim on the property.
Unlike the UK model where equity release is sold commercially, the French framework is integrated into the Civil Code and designed to protect borrowers through strict transparency, fixed-rate control and state-appointed notaries.
The three regulated mechanisms
Lifetime mortgage
A long-term loan secured on your home. You stay in residence, make no monthly repayments, and interest compounds until repayment from the sale proceeds – usually after death or long-term care. This format suits senior homeowners who want cash flow without losing ownership. It is detailed further in the lifetime mortgage in France section of our site.
Mortgage-backed loan
A traditional secured loan using property as collateral. The borrower receives a lump sum or credit line and repays over time. It is often used by active professionals and entrepreneurs who need immediate liquidity while maintaining stable income. This model is explained on the mortgage-backed loan in France page.
Sale with deferred price
A temporary notarial sale to an investor providing an upfront payment and a deferred balance upon resale. It supplies rapid liquidity without a permanent transfer of ownership. Details and simulations appear in our sale with deferred price simulator.
Each of these structures falls within the national rules that define safe equity release in France, combining financial efficiency with legal protection.
Who benefits most
Equity release serves owners who are “asset-rich but cash-poor.” Typical candidates include retirees seeking to supplement pensions, expatriates who own French property yet lack access to domestic credit, and self-employed individuals facing income fluctuations. Families managing inheritance costs, divorce settlements or urgent tax obligations also use these mechanisms to maintain stability without liquidation.
Example calculation
This example represents a property valued at €900 000 generating €360 000 in tax-free liquidity. After ten years at 4.5 % annual interest capitalised, total debt reaches €540 000, leaving roughly €360 000 of remaining equity for heirs if property values stay stable.
Why choose equity release instead of selling
Selling means losing both your residence and future capital gains. Equity release preserves your home, protects your family estate and allows you to access liquidity on your own terms. Owners retain control of their property, while the notary ensures that all obligations and heirs’ rights are documented precisely. Under equity release regulations in France, every operation undergoes the same legal checks as a sale, without changing ownership.
Typical uses and motivations
Released funds may serve diverse goals – financing renovations, settling taxes, assisting relatives, funding long-term care or consolidating debts. Some clients use equity release to preserve investment portfolios, while others plan donations in advance to reduce inheritance taxation. Because proceeds are a loan, not income, there is no income-tax impact.
Example case study
John and Margaret, British retirees living in Provence, owned a villa worth €850 000 but lacked liquidity for renovation. Their bank declined a standard loan due to age. PraxiFinance structured a lifetime mortgage releasing €300 000 within eight weeks. They remained full owners, completed the renovation, and retained the property for their children’s inheritance.
Tax and inheritance considerations
Funds released under equity-release structures are not taxable income. Interest can be deducted if the financing improves a rental or professional asset. Upon death, heirs may either repay the balance or sell the property; any surplus after repayment belongs entirely to them. The notary handles both accounting and legal publication, ensuring compliance and full clarity for heirs.
Timeline and procedure
The average duration from first contact to funds is eight to ten weeks.
1 – Initial eligibility assessment (48 h).
2 – Independent property valuation.
3 – Drafting of the notarial deed and compliance checks.
4 – Signature before the notary.
5 – Transfer of funds from escrow.
This schedule mirrors the one detailed in how equity release works in France (/page/how-equity-release-works-france), where each stage is explained in depth.
Advantages and potential risks
Advantages
- Liquidity while retaining ownership.
- Fixed interest and predictable outcome.
- No relocation or disruption of lifestyle.
- Notarial authentication and consumer protection.
Risks
- Compound interest gradually reduces inheritance value.
- Valuation and notarial costs (≈ 1.5 – 2 % of the loan).
- Early repayment may generate standard penalties.
PraxiFinance mitigates these factors through conservative modelling and flexible contract clauses.
Complementary solutions
Equity release often integrates with other financing paths.
- A mortgage-backed loan suits active owners who prefer periodic repayment.
- A lifetime mortgage is ideal for retirees seeking total repayment deferral.
- A sale with deferred price provides immediate cash during a sale process.
These approaches, explained respectively on the dedicated English pages, form a single continuum of property-monetisation solutions designed and executed by PraxiFinance.
Why PraxiFinance
PraxiFinance is France’s first independent firm devoted exclusively to property-monetisation strategies. Founded in 1990, it has structured over 3 000 operations for residents and non-residents, partnering with national notarial chambers and institutional lenders. Our bilingual advisers handle each case personally, travelling from Paris, Nice or Bordeaux to meet clients on-site. Transparency, legal safety and precision define every step.
Owners choosing PraxiFinance benefit from clear simulations, fixed-fee transparency, and long-term assistance even after completion.
FAQ – Common questions about equity release in France
Can foreigners use equity release?
Yes. PraxiFinance regularly assists British, Irish, American and European property owners meeting the eligibility criteria.
Do I keep my home?
Yes. Ownership and occupancy remain yours; the property simply secures the operation.
Is borrowing against property in France safe?
Absolutely. Transactions are notarised and regulated by national mortgage law.
How much can I release?
Usually between 20 % and 50 % of the appraised value, depending on profile and structure.
Can I repay early?
Yes, under notarial conditions allowing partial or total settlement.
What happens at death?
Heirs may either repay the balance or sell the property; all remaining value belongs to them.
How long does it take?
Approximately 8 to 10 weeks from valuation to fund transfer.
What are the alternatives?
The principal alternatives are the lifetime mortgage in France, the mortgage-backed loan in France and the sale with deferred price model.
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