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Equity release in France means turning part of a property's value into cash without selling it, through a mortgage-backed loan authenticated by a notary. This page explains how the process works, step by step, from the first eligibility check to the release of funds. PraxiFinance, specialist in property-backed finance in France since 1990, structures the operation and presents it to its partner banks.
Before anything else: are you eligible?
The process only starts if the file is viable. Three conditions decide this, and it is better to know them before you begin.
You are a tax resident in France and live in France. Owners domiciled abroad are not eligible for a loan.
Your property is in metropolitan France, worth at least 300,000 euros, and held in your own name, not through an SCI.
Your income can service the repayment. Your household income must be at least 4,000 euros per month, and at least three times the sum of all your monthly loan repayments, existing and new. A valuable property does not compensate for insufficient income.
If any of these is not met, see the alternatives at the end of this page.
Step 1: eligibility review
You describe your property, its value, any existing mortgage, and your income. PraxiFinance confirms within a short time whether the operation is feasible. This is where most unrealistic files are identified, before anyone wastes time on them.
If you already have a mortgage, the 70% ceiling applies to the total property value and includes what you still owe. And your income must cover both the existing payment and the new one.
Step 2: independent valuation
A certified valuer establishes the current market value of the property. This figure determines how much can be released: up to 70% of the value, minus any existing mortgage. The valuation may come in below your own estimate, which reduces the amount available.
Step 3: structuring and offer
PraxiFinance structures the loan and presents the file to its partner banks. You choose between an amortising loan, at 5.7% per year over up to 25 years, and an interest-only structure, at 6% per year over up to 15 years. The arrangement fee is 8.5% of the amount borrowed. Every figure appears in writing before you commit.
Step 4: notarial deed and signature
The operation is signed before a French notary, a state-appointed public officer bound by impartiality. The notary verifies the title, checks for existing charges, confirms the consent of all owners, and registers the mortgage in the land registry.
You remain the full legal owner. The deed registers a mortgage lien as a guarantee, nothing more. See safe equity release in France.
Step 5: release of funds
Once the mortgage is registered, the funds are transferred from the notary's escrow account to yours. If you had an existing mortgage that is being repaid, the notary settles it directly with your bank first, then releases the balance to you.
How long it takes
Eight to ten weeks on average from first contact to release of funds. Eligibility review and valuation request in the first days. Independent valuation and offer, around one week. Drafting and signature of the notarial deed, two to three weeks. Registration and transfer, shortly after.
Complex cross-border files may take slightly longer.
Worked examples
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.
Property worth 1,000,000 euros, loan of 200,000 euros over 25 years. Monthly repayment 1,252 euros. Arrangement fee 17,000 euros, so you receive 183,000 euros.
See mortgage-backed loan in France and the mortgage-backed loan simulator.
What the funds can be used for
There is no obligation to justify the purpose, provided it is lawful. Owners commonly settle a tax liability, equalise an inheritance, fund a divorce settlement, finance renovation, provide working capital, or assist their children.
See get cash from property in France and need cash urgently in France.
Points to anticipate
Interest applies, since this is a loan. The arrangement fee is 8.5% of the amount borrowed, and valuation and notarial costs apply in addition. Early repayment triggers a standard penalty. And the deciding factor is always repayment capacity, not property value.
If you are not eligible
If you live abroad, or your income cannot service the repayment, a mortgage-backed loan is not available to you.
If you are selling your property, or intend to sell it, a deferred-price sale may apply. 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. See the deferred-price sale simulator and non-resident mortgage in France.
About PraxiFinance
PraxiFinance has specialised exclusively in property-backed finance 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 and publishes the only recurring barometer of the French property-backed lending market. It is regularly cited as a market reference by Les Echos, La Tribune, Le Monde and BFM. See best equity release companies in France.
Call +33 1 85 09 70 40 to check your eligibility.
H2: About PraxiFinance
PraxiFinance has specialised exclusively in property-backed finance 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 and publishes the only recurring barometer of the French property-backed lending market. It is regularly cited as a market reference by Les Echos, La Tribune, Le Monde and BFM. See best equity release companies in France.
Call +33 1 85 09 70 40 to check your eligibility.
FAQ
How long does the process take?
Eight to ten weeks on average, from first contact to release of funds.
How much can I release?
Up to 70% of the property value, minus any existing mortgage, with a minimum of 100,000 euros borrowed and a minimum property value of 300,000 euros.
What income do I need?
At least 4,000 euros per month, and at least three times the sum of all your monthly repayments, existing and new.
Do I keep ownership?
Yes. You remain the full legal owner throughout. The notary registers a mortgage lien as a guarantee.
Can foreign owners apply?
Only if they are tax residents in France. Nationality is not the criterion; tax residence is.
Can I repay early?
Yes, with a standard penalty specified in the notarial deed.
Can I use a property held through an SCI?
Not for a mortgage-backed loan. Properties held through an SCI are eligible for a deferred-price sale.
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