Equity release in France is the process of converting part of the value of a property you own into available cash, without selling it. Three regulated solutions exist. If you are a tax resident in France, a mortgage-backed loan lets you borrow up to 70% of your property value while keeping full ownership. If you are domiciled abroad, a sale with right of repurchase (réméré) lets you release cash and buy the property back later, and a deferred-price sale works as an advance if you intend to sell. PraxiFinance, specialist in property-backed finance in France since 1990, structures all three.
Which solution applies to you
You are a tax resident in France: the mortgage-backed loan
A secured loan using your property as collateral. You receive a lump sum and repay over time. Ownership never changes hands. The notary registers a mortgage lien as a guarantee.
Eligibility: you live in France and are a tax resident in France; your property is in metropolitan France and 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 future monthly repayment; 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 property value.
Fixed rate: 5.75% per year for an amortising loan, up to 25 years. 6% per year for an interest-only structure, up to 15 years. Fees: about 9.5% of the amount borrowed for 100,000 euros, decreasing to about 8.5% for larger amounts, included in the financing. No borrower insurance, no health questionnaire, and you can be up to 95 years old at the end of the loan.
Worked examples
Property worth 1,000,000 euros, loan of 200,000 euros over 25 years at 5.75%. Monthly repayment about 1,258 euros. Fees below 9.5%, as they decrease with the amount.
Property worth 300,000 euros, loan of 100,000 euros over 10 years at 5.75%. Monthly repayment about 1,098 euros. Fees about 9,500 euros.
You live abroad: sale with right of repurchase or deferred-price sale
You want to keep the property and buy it back later: the 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 about 10% per year. Costs are about 8.5% at signature. It 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.
You intend to sell: the 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 about 60% of the property value at signature, then everything above that purchase price when the property is resold on the open market. You can stay in the property for 6 months to 3 years, with an occupancy indemnity of about 10% per year paid in advance. 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.
Why residence matters so much
French banks lend against French property to French tax residents. Foreign banks do not lend against foreign assets. A bank cannot easily assess, or enforce against, income earned in another jurisdiction.
This is why a non-resident owner cannot obtain a mortgage-backed loan on a French property, whatever its value. It is structural, not a matter of documentation. See non-resident mortgage in France and can foreigners release equity in France.
Income is assessed, not just the property
A frequent misunderstanding. The property secures the loan, but it does not replace income. A partner bank will always verify that you can service the monthly repayment. Your household income must be at least three times that repayment, and the budget left after repayment is checked.
A valuable property with insufficient income will not obtain financing.
How the French framework protects you
Unlike the UK model, where equity release is a commercially marketed retail product, the French framework sits within the Civil Code. Every operation is authenticated by a notary and recorded in the national land registry.
Ownership never changes hands in a mortgage-backed loan. The deed registers a financial claim on the property, nothing more. See safe equity release in France.
Who uses equity release in France
Owners who are asset-rich but cash-constrained. Typical situations include settling an inheritance or a divorce, covering a tax liability, funding renovation, providing working capital for a business, or bridging the purchase of a new property before the current one is sold.
See property rich but cash poor in France, get cash from property in France, unlock property wealth in France and release equity from a French property.
Why release equity instead of selling
Selling means losing both the property and any future appreciation. It is irreversible. Equity release preserves your home and your estate while giving you access to liquidity.
If you have already decided to sell and simply need funds before completion, the deferred-price sale is the appropriate route. See what to do if your property is not selling in France.
Case study
John and Margaret are British citizens. They have lived in Provence for years, are tax residents in France, and own their villa outright. They wanted to help their children financially and buy a boat. Their bank declined a standard loan because of their age.
PraxiFinance structured a mortgage-backed loan of 300,000 euros secured on their villa. They remained full owners, used the funds as they wished, and kept the property in their estate.
The key point in their file was not their nationality. It was that they live in France, pay tax in France, and their income covered the monthly repayment. A British couple living in London, owning the same villa, would not have been eligible.
Timeline
An agreement in principle in about one week, then release of funds 30 to 45 days after the bank's acceptance. Initial eligibility assessment, independent valuation, structuring and presentation to partner banks, drafting of the notarial deed, signature, transfer of funds from escrow.
See how equity release works in France.
Example calculation
Costs and points to anticipate
Fees are about 9.5% of the amount borrowed for 100,000 euros, decreasing to about 8.5% for larger amounts. They include notarial costs, mortgage registration, file fees, valuation and PraxiFinance's fee. Early repayment triggers a standard penalty. The valuation may come in below your expectation, which reduces the amount available.
PraxiFinance discloses every cost in writing before signature.
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.
English-speaking advisers handle files for international owners, whether they live in France or abroad.
Call +33 1 85 09 70 40 to check your eligibility.
FAQ
Can foreigners use equity release in France?
A mortgage-backed loan requires French tax residency, whatever your nationality. A British citizen living in France and paying tax in France is eligible. A French citizen living in Dubai is not. If you live abroad, a sale with right of repurchase applies if you want to buy the property back later, and a deferred-price sale if you intend to sell.
Do I keep my home?
Yes. With a mortgage-backed loan, ownership and occupancy remain yours. The property simply secures the operation.
How much can I release?
Up to 70% of the appraised value, with a minimum of 100,000 euros borrowed and a minimum property value of 300,000 euros.
What is the interest rate?
A fixed 5.75% per year for an amortising loan, 6% per year for an interest-only structure.
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 sale with right of repurchase or a deferred-price sale, which are assessed on the property.
Can I use a property held through an SCI?
Yes, if the SCI is subject to corporate tax (SCI à l'IS). In that case the loan is limited to 50% of the property value. An SCI subject to income tax (SCI à l'IR) is not eligible. A deferred-price sale can also be structured on a property held through an SCI.
How long does it take?
About one week for an agreement in principle, then 30 to 45 days after acceptance for the funds.
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