Equity release exists in France, but it works very differently from the UK market. It is a notary-supervised framework that lets owners turn part of the value of a French property into cash. What is available to you depends above all on where you live. If you live in France and pay tax there, you can borrow against your property with a mortgage-backed loan or, from age 60, a lifetime mortgage. If you live abroad, borrowing is not available, and two sale-based solutions take over: the sale with right of repurchase if you want to keep the property, and the deferred-price sale if you intend to sell. PraxiFinance, founded in 1990 with offices in Paris and Nice, structures all of them with bilingual support.
Is equity release available in France?
In the UK, “equity release” describes a category of retail products sold by private providers. In France, every operation goes through a notary, who authenticates the deed and registers it in the national land registry. The mechanics depend on real-estate law and on the rules of the partner banks and investors, not on a single retail product.
The question is therefore not whether equity release exists, but which structure fits your residence, your age and your plans for the property.
If you live in France: two ways to borrow
Mortgage-backed loan
A loan secured on your property, repaid either in monthly instalments (amortising, up to 25 years) or with interest only and the capital at the end (in fine, up to 15 years). You keep full ownership and occupancy.
- You live in France and are a tax resident there.
- The property is worth at least 300,000 euros.
- You borrow at least 100,000 euros, up to 70% of the property value.
- Your household income is at least three times the monthly repayment, and the budget left after repayment is checked.
- The property is held in your own name, or through an SCI subject to corporate tax (SCI à l'IS), in which case the loan is limited to 50% of the value.
- You are not registered with the French credit incident register (FICP).
The rate is fixed: 5.75% per year amortising, 6% per year in fine. Fees are about 9.5% of the amount borrowed for 100,000 euros, decreasing to about 8.5% for larger amounts, and are included in the financing. There is no borrower insurance, no health questionnaire, and you can be up to 95 years old at the end of the loan.
Lifetime mortgage (prêt viager hypothécaire)
Reserved for owners aged 60 or over who live in France and pay tax there. You receive between 15% and 50% of the property value depending on your age, paid as a single lump sum. There are no monthly repayments and no income condition: interest is added to the debt, which can never exceed the value of the property. The loan is repaid when the property is sold or from the estate. It has no fixed term.
The property must be worth at least 300,000 euros, for a loan of at least 100,000 euros. It cannot be held through an SCI or used for a professional purpose. Fees are about 9.5%, including PraxiFinance's fee. The process takes 2 to 3 months, and the funds are released within 48 hours of signature. Full details in our guide to the lifetime mortgage in France.
If you live abroad: two sale-based solutions
If you are domiciled abroad, fiscally and physically, a mortgage-backed loan and a lifetime mortgage are not available to you, whatever your nationality and whatever the value of your French property. Two solutions remain, depending on what you want to do with the property.
You want to keep the property: sale with right of repurchase (vente à réméré)
You sell the property to an investor and keep the right to buy it back within a maximum of 5 years. You can stay in the property during that period, paying an occupancy indemnity of 10% to 12% per year, paid in advance. Costs are about 8.5% at signature. The operation is assessed on the property, not on your income, and your country of residence is not an obstacle. The need must be at least 100,000 euros. Full details in our guide to sale and leaseback in France.
You intend to sell: deferred-price sale (vente avec complément de prix)
It works as an advance while you wait for the sale. The sale to the investor is final: you receive between 42% and 60% of the property value at signature, then, when the property is resold, whatever the resale price achieved exceeds that purchase price, under the terms of the contract. This additional price depends on the terms of the contract and on the resale price actually achieved: it is not guaranteed, and nothing further is due if the property is not resold above the purchase price. If the contract provides for it, you can stay in the property for 6 months to 3 years, with an occupancy indemnity of about 10% per year paid in advance and refunded pro rata if you leave early; you must vacate the property on the agreed date. It can also be structured on a property held through an SCI.
For both solutions, the property must be in France and worth at least 300,000 euros. Funds are released in 10 to 20 days in Paris and 30 to 60 days elsewhere in France. You can compare them in our guide to equity release in France.
Equity release vs remortgage in France
In the UK, remortgaging often means moving to a new lender and borrowing more against your home. In France, the closest equivalent is the mortgage-backed loan described above: it can repay your existing mortgage and release additional cash in the same operation, provided the part used to repay existing loans stays below 60% of the amount borrowed. A lifetime mortgage can also repay an existing loan on the property. If you live abroad, neither is available, and the sale-based solutions described above apply.
Documents to prepare
- Passport or national ID and proof of address.
- French title deed (acte de propriété).
- Statement of any existing mortgage on the property.
- Income documents for a mortgage-backed loan.
Every file is executed by a notary, who prepares the deed, verifies ownership, arranges registration and releases the funds once all checks are complete. If part of the proceeds repays an existing mortgage, the notary pays the bank first and transfers the balance to you.
Timelines
- Mortgage-backed loan: agreement in principle in about one week, funds 30 to 45 days after the bank's acceptance.
- Lifetime mortgage: 2 to 3 months in total, funds within 48 hours of signature.
- Sale with right of repurchase and deferred-price sale: 10 to 20 days in Paris, 30 to 60 days elsewhere in France.
Inheritance
With a mortgage-backed loan or a lifetime mortgage, you remain the owner and the property stays in your estate. Your heirs can repay the balance and keep the property, or sell it and keep the surplus after repayment. With a lifetime mortgage, the debt can never exceed the value of the property, so heirs never have to pay more than it is worth.
When equity release is not available
No solution can proceed when ownership is unclear, for example in a disputed inheritance, or when the property is below the minimum value of 300,000 euros. Owners under legal guardianship, or without the consent of all co-owners, must regularise their situation first. PraxiFinance identifies these obstacles at the start of the file.
Why PraxiFinance
PraxiFinance has specialised 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. English-speaking advisers handle files for international owners, whether they live in France or abroad.
FAQ : Equity Release Availability in France
Is equity release available to UK or US expats?
It depends on where you live, not on your nationality. A British or American citizen living in France and paying tax there can use a mortgage-backed loan or, from 60, a lifetime mortgage. If you live abroad, the options are a sale with right of repurchase, if you want to buy the property back, or a deferred-price sale, if you intend to sell.
Can I stay in my home?
Yes. With a loan you keep ownership and occupancy. With a sale with right of repurchase you stay in the property while paying an occupancy indemnity, and with a deferred-price sale you can stay for 6 months to 3 years if the contract provides for it, paying an occupancy indemnity, and must leave on the agreed date.
What is the minimum property value?
300,000 euros for all solutions, with a minimum need of 100,000 euros for loans.
Is my income assessed?
Yes for a mortgage-backed loan: your household income must be at least three times the monthly repayment. No for a lifetime mortgage, a sale with right of repurchase or a deferred-price sale.
How long does the process take?
About 30 to 45 days after acceptance for a mortgage-backed loan, 2 to 3 months for a lifetime mortgage, and 10 to 60 days for a sale with right of repurchase or a deferred-price sale, depending on the location.
Will my heirs lose the house?
No. With a loan, they can repay the balance and keep the property, or sell it and keep the surplus.
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