THE TIMES 12 AUGUST 2003

What happens if you find, like half a million other Britons, a perfect home there? Conveyancing can be neatly divided into two types of transaction: the purchase of an existing property and the purchase off-plan.

  For an existing property, the buyer is asked to move quickly to a binding contract either called a compromis or a promesse de vente. It usually contains conditions — conditions suspensives — relating to planning, finance and title matters. A 10 per cent deposit is payable but there is a seven-day cooling-off period giving the buyer the right to withdraw. When the contract is sent to the notaire, appropriate searches are made with important consumer clauses inserted relating to the presence or absence of termites, asbestos or lead in the property. When the conveyance is signed, an original is sent to the land charges registry and an official copy (expedition) is sent to the buyer.

  For an off-plan purchase, there are three stages: the option contract (contract de reservation), the conveyance (acte authentique de vente) and the handover (remise des clefs). Stage 1 includes the payment of a 5 per cent deposit; the price is fixed and will be inclusive of TVA (VAT) at 19.6 per cent. Title passes under Stage 2. The third stage happens when the building is complete. A thorough inspection should be given before the property is accepted.

  A relatively little-known method of buying in France is "leaseback' — otherwise known as nouvelle propriété or propriété allégée. It should not be confused with timeshare. The scheme provides a sale and immediate leaseback, usually for nine to eleven years, with a guaranteed rental income and the ability to use the property for four weeks a year. Most leasebacks available are on new properties in certain locations in France. There is also a significant cashflow advantage in that the 19.6 per cent VAT levied on the new property can be claimed back, although a proportion may need to be paid eventually on resale. Income figures vary on leaseback but they can be about 4 per cent, which can be used, to offset any mortgage repayments.

  To take out a french mortgage can take time. Crédit Agricole, Barclays Bank and Abbey National are among the lenders in the market. French law does not allow french banks to offer mortgages where the repayments are more than 30 per cent of your net income. Many french lenders have now made their lending criteria more stringent. When applying for a mortgage, proof of income and outgoings will be needed, including the production of payslips and tax returns.

  The costs of purchasing in France are higher than in the UK. For properties more than five years old these can amount to a stamp duty of 5 per cent. For newer properties, the percentage is about 1.2 per cent. For both, there will also be the land registry fees of 0.75 per cent, notaires fees of 1.3 per cent and probably a mortgage arrangement fee of 1 per cent And watch out for the estate agents' commission.

  French inheritance law is a minefield. Doing nothing is not a good option and may lead to minors inheriting part of the property and seriously affecting the saleability of the property until they come of age. Also, french capital gains tax and wealth tax on more expensive properties need to be considered.

  There are plenty of magazines and books to provide buyers with insights into all aspects of french property acquisition. Buying a property in France should be pleasurable but make sure you do your homework before you start.

The author is a partner at Bevans (www.bevans.co.uk) in Bristol.