For many international homeowners, much of their wealth sits in bricks and mortar. French property values have risen steadily for decades, yet conventional banks rarely accommodate retirees, entrepreneurs or self-employed borrowers who need liquidity. Equity release provides a modern, legally supervised alternative: it turns part of a home’s value into cash without selling or moving, through a mechanism guaranteed by French notarial law. Since 1990 PraxiFinance has specialised in converting property equity into immediate capital for owners throughout France, Monaco and the Riviera, always under notarial control.
Defining equity release within the French system
Equity release is a financial structure allowing homeowners to withdraw a portion of their property’s market value as tax-free cash while retaining ownership. The funds are considered a secured loan, not income, so they carry no income-tax impact. When the contract ends – after sale, inheritance or relocation – the balance and accumulated interest are repaid, usually from sale proceeds.
All operations are regulated by the French Civil Code and must be signed before a notary (notaire). The notary authenticates the deed, registers the guarantee in the land registry, and ensures borrower protection. This legal framework distinguishes French equity release from commercial UK-style products, giving it exceptional security and transparency.
The three regulated mechanisms
Lifetime Mortgage
A lifetime mortgage is a long-term loan secured on your home, available from age 60. You receive a lump sum or draw-down facility, make no monthly repayments, and interest compounds each year. Repayment occurs when the property is sold – by your estate or upon a move into long-term care. Because the loan is backed by a notarial deed, ownership and occupancy rights remain intact. This model suits retirees or long-term owners whose income has slowed but whose property holds substantial value. Further details appear in the lifetime mortgage in France section.
Mortgage-Backed Loan
This structure operates like a standard mortgage but offers greater flexibility. You borrow against property value to finance business, investment or consolidation. Repayments may be amortising (capital + interest) or interest-only “in fine” with principal settled at term. Because the loan is governed by French mortgage law, every clause – rate, duration, guarantee – is verified by a notary. Typical durations range from 5 to 25 years with loan-to-value ratios near 50–60 %. It fits professionals or property-rich owners rejected by retail banks. The mechanism is described comprehensively on the mortgage-backed loan in France page.
Sale with Deferred Price
This option allows an owner to sell now while keeping temporary occupancy. A private investor purchases the property under a notarial clause reserving your right to remain for a defined period – usually 6 to 12 months. You receive an upfront payment immediately and the remaining balance once the resale completes. Because it is a sale, not a loan, there is no interest, repayment schedule or debt. It is suited to owners awaiting a buyer, bridging relocation, or facing urgent tax or debt pressure. Simulations of this structure are available through the deferred-price sale simulator.
Each of these mechanisms forms part of the national framework ensuring safe equity release in France.
Comparison of French equity-release solutions
Example calculation
A home valued at €1 000 000 releasing 40 % (€400 000) at 4.6 % annual capitalised interest would generate a total debt of ≈ €560 000 after 10 years, leaving ≈ €440 000 of equity if market value remains stable. Because interest accrues predictably and is cleared only at sale, the owner enjoys liquidity today while heirs keep future upside.
Tax and inheritance considerations
Funds from equity release are loans, not income, and therefore tax-neutral. Interest may be deductible when used for investment or rental enhancement. Upon death, the loan + accrued interest are repaid from sale proceeds; the remaining surplus belongs entirely to heirs. Each operation is documented in a notarial deed, providing clear inheritance records and transparency across generations. Detailed legal obligations appear in the equity-release regulations in France reference page.
Typical timeline
- Eligibility review and valuation request (48 h – 7 days)
- Independent valuation and offer confirmation (1 week)
- Drafting and signature of the notarial deed (2–3 weeks)
- Registration and fund transfer from notary escrow (24 h)
Average duration: 8 to 10 weeks from first contact to fund release.
Advantages and potential drawbacks
Main advantages
- Access to liquidity while retaining ownership.
- Legal security through mandatory notary supervision.
- Fixed rates and predictable outcomes.
- No relocation or lifestyle change.
Potential drawbacks
- Interest capitalisation reduces inheritance value over time.
- Standard valuation and notary fees (≈ 1.5–2 %).
- Early repayment may incur minor penalties.
PraxiFinance’s modelling anticipates these effects, integrating flexible clauses and realistic growth assumptions to preserve family equity.
Why choose PraxiFinance
Since 1990 PraxiFinance has focused exclusively on property-backed financing and equity release for residents and non-residents. Each transaction is validated by a notary and adjusted to your objectives – liquidity, inheritance planning or tax management – while maintaining ownership and peace of mind. Our bilingual teams operate across Paris, Bordeaux, Nice and the Riviera, providing personal meetings and transparent reporting.
PraxiFinance key strengths
- 35 years of expertise in French equity release.
- Certified network of notaries and partner banks.
- Tailored solutions for non-resident owners.
- Transparent fees and fixed rates.
- Average fund release within 8–10 weeks.
FAQ – How Equity Release Works in France
Can foreign owners apply? Yes, provided the property is in France and meets valuation and age conditions.
Is the cash tax-free? Yes, the amount is a loan under notarial law, not income.
What if I sell or move? The notary reimburses the balance from sale proceeds; any surplus returns to you.
Can I repay early? Yes, partial or full repayment is allowed after a minimum period defined in the contract.
Which structure is best for me? PraxiFinance analyses each file to determine whether a lifetime mortgage, a mortgage-backed loan or a deferred-price sale fits your needs.
How long does the process take? Around 8–10 weeks on average.
Is equity release safe in France? Yes; all transactions are regulated and authenticated by notaries under state supervision.
For a complementary overview of market actors and safeguards, see our analysis of the best equity-release companies in France.
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