With the EU Referendum approaching we thought we would collect a few news stories and insights on the potential outcome and effects on you buying a property in an EU member country, specifically France. We will publish regular updates here in our "News in General" Blog pages on the Cle France website to keep you up to speed.

What Will Happen?

There are many fiery debates in the UK licking around the topic of EU membership but there’s one that has yet to ignite. And it’s the question that always comes up during the property-buying seminars at our exhibitions (along with wills and healthcare):

What will happen to the estimated 2.2 million Brits who live in the EU, and the further one million who own holiday homes there?

At the moment Brits are free to live and work in most EU countries as well as own property. They do so as citizens of an EU member state and are free to come and go as they wish except for usually cursory passport controls.

But how fundamentally will all this change if the UK leaves the EU? The straightforward answer is that if the UK did leave, in theory Brits would be treated as non-EU citizens and treated differently when they visited holiday homes or wanted to live (or continue living) within an EU country.

There is a great difference between what’s theory and reality. Those urging an exit say bilateral agreements either with the EU or individual countries would be struck to help establish a working system for UK expats and holiday home owners.

Opponents say the EU’s strict immigration rules would make this difficult or impossible. But for the sake of debate, let’s play out some likely changes following a Brexit based on the current rules.

Permanent Residents

Anyone who has lived in an EU state for more than five years can apply for long-term resident status under EU law. But your status would be more restricted than your current one as an EU citizen, and there may be ‘integration rules’ for long term residency – such as being able to speak your host nation’s language.

Holiday Home Owners

The EU could require UK citizens to apply for a visa in order to visit a country within the EU, which for holiday home owners would mean more intrusive questions about how long you were going to stay, your income and health cover.

Property Ownership

UK citizens are likely to remain free to own property within the EU, as any other nationality is. For example, in France many US citizens own property there without any restrictions. The main area of contention is here is how property inheritance and taxation laws would apply; at the moment the rules treat EU and non-EU citizens differently.

Getting a Mortgage

UK buyers may find it harder to get a home loan to buy a property in the EU. This is because European-based banks consider non-EU citizens to be a higher risk and therefore the amounts that can be borrowed would be lower, and the deposit required may be higher.

View from over there

Marc Pritchard, sales and marketing director at developer Taylor Wimpey Espana, lives on the Balearic island of Mallorca. He says a potential Brexit has yet to impact Spain yet.

“Most Spanish people are too preoccupied with hanging on to their jobs to worry about a UK exit, and very few of the Brits I have met recently mention it,” he says.

“Even if Britain did leave Europe it wouldn’t stop Brits buying and living here. We sell to over 30 different nationalities including those outside the UK such as Russia, the Ukraine and the Middle East. I’m not aware of any difficulties for them getting visas to live in Spain, or registering with the tax authorities here.”

What if we don’t leave?

There are two likely outcomes. First is that David Cameron renegotiates our membership of the EU, but this is unlikely to affect Brits owning first or second homes within the EU.

The exception to this may be those thinking of buying or living in some Eastern European states such as Romania, Poland and Bulgaria. If their citizens’ rights to enter the UK are restricted, there may be some tit-for-tat action.

The second prediction is that the UK becomes a ‘second tier’ member of the EU as Iceland, Norway and Lichtenstein are, by being a member of European Economic Area rather than full-member of the EU. EEA membership would still enable UK citizens to live and work in the EU as they do now, albeit with restricted access to some rights and social benefits.

Nigel Lewis

This article was originally published in the A Place in the Sun magazine - Issue 124 

Cle France Thoughts

At the moment nothing has changed of course and if the people of the UK vote to stay in then very little will change for at least a generation or two, even if Britain did leave Europe it wouldn’t stop Brits buying and living on mainland Europe. Sharon and David at Cle France lived and worked in France during the 1980's and 1990's when you had to 'jump through many hoops' before it was the 'free movement' we enjoy at the moment, they also lived in France from 1999 up to 2012 full time and at the start of that period you could not just 'arrive' you had to prove income and that you could 'support yourself financially' so going back to that type of scenario won't happen overnight, all it will really mean is a bit more paperwork!

Brits have always bought property as holiday homes and lived full time in France, Spain and other European countries before the formation of the EU and even if there is a Brexit for the UK this will still be the case.

One thing is clear and that is during these times, similar to the Scottish Yes / No campaign there is an air of uncertainty and this will no doubt be fuelled by any further comments from the Brexit brigade, this effect could seriously cause the cost of your property purchase to increase significantly, so for this reason many clients have purchased their euros in advance.

This method is called a 'Forward contract' and by doing this with FC Exchange it means you can fix your exchange rate for up to two years in advance, so you’ll know exactly how much you’ll get when you make your international money transfer. This makes budgeting a great deal easier and a lot of stress is removed.

Do you want more information ?

So if you need to buy or sell sterling and would like to be kept up to date with all the latest data releases and exchange rate movements then feel free to contact myself Ben Amrany. If you are buying or selling a house in France we will make sure your monies are in the right place at the right time, we work hand in hand with you and Cle France.

For more information on the currency service I can provide please feel free to contact myself...

Ben Amrany from FC Exchange follow this link or phone and ask for myself and quote "Cle France" on 020 7989 0000.

You may contact me directly using this form (click here) with your requirement and I will explain the options that are available to you in getting the best exchange rate.  

Blog submitted by: Alex for The French Property Network - Cle France.

Originally published: in the A Place in the Sun magazine - Issue 124

For everything you need to know about French property visit www.clefrance.co.uk

With the EU Referendum approaching we thought we would collect a few news stories and insights on the potential outcome and effects on you buying a property in an EU member country, specifically France. We will publish regular updates here in our "News in General" Blog pages on the Cle France website to keep you up to speed.

Here is our first recently published by one of our main advertising partners over at "A Place in the Sun".

90% of UK overseas property owners admit they are unsure how a Brexit will affect their overseas property

4 in 10 (42%) admit to having concerns about their overseas property purchase

7 in 10 said that leaving the EU would not prevent or postpone them from buying an overseas property

90% of British overseas property owners admit they are not aware of how Britain leaving the EU will affect their current property purchase, according to new research undertaken on the announcement of the referendum date.

However, only 4 in 10 (42%) of those surveyed said they were concerned about how a potential Brexit will affect their overseas property purchase. Currently, 2.2 million Brits live within the EU, outside of the UK, with a further 1 million owning a holiday home. Property investment overseas has seen a resurgence in the last two years, helped by a stronger pound and better value property.

A Place in the Sun Survey Results

A recent survey by A Place in the Sun found that 1 in 10 Brits aged 45 and over are already considering using their available pension pots to buy a property outside of the UK. However, the impending referendum has not seemed to deter property purchasers, with more than 70% of Brits saying that Britain leaving the EU would not prevent or even postpone any future purchases.

Recent research revealed that three quarters of Brits would choose to buy a property abroad for a better way of life, 70% citing warmer climates. 26% admitted that they felt that they would be in a better financial position by owning a property abroad, with 27% admitting that they would be enticed by thoughts of a nicer property.

Overseas property hunters are not being deterred by the potential Brexit, secured in the knowledge that based on whether or not Britain remains in the EU, the immediate effect on overseas property owners is likely to be minimal.

Managing Directors Comments

Andy Bridge, Managing Director of A Place in the Sun commented:

“I think the reason the majority of people surveyed state they are unaware of the impact leaving the EU would have on overseas home ownership is because they don’t identify the question as an issue. While there could be different tax treatment of non-EU nationals owning property, it would be detail at this level rather than any sort of restriction. A degree of concern is understandable and of course all buyers should take advice prior to purchase.”

Cle France Thoughts

At the moment nothing has changed of course and if the people of the UK vote to stay in then very little will change for at least a generation or two, even if Britain did leave Europe it wouldn’t stop Brits buying and living on mainland Europe. Sharon and David at Cle France lived and worked in France during the 1980's and 1990's when you had to 'jump through many hoops' before it was the 'free movement' we enjoy at the moment, they also lived in France from 1999 up to 2012 full time and at the start of that period you could not just 'arrive' you had to prove income and that you could 'support yourself financially' so going back to that type of scenario won't happen overnight, all it will really mean is a bit more paperwork!

Brits have always bought property as holiday homes and lived full time in France, Spain and other European countries before the formation of the EU and even if there is a Brexit for the UK this will still be the case.

One thing is clear and that is during these times, similar to the Scottish Yes / No campaign there is an air of uncertainty and this will no doubt be fuelled by any further comments from the Brexit brigade, this effect could seriously cause the cost of your property purchase to increase significantly, so for this reason many clients have purchased their euros in advance.

This method is called a 'Forward contract' and by doing this with FC Exchange it means you can fix your exchange rate for up to two years in advance, so you’ll know exactly how much you’ll get when you make your international money transfer. This makes budgeting a great deal easier and a lot of stress is removed.

Do you want more information ?

So if you need to buy or sell sterling and would like to be kept up to date with all the latest data releases and exchange rate movements then feel free to contact myself Ben Amrany. If you are buying or selling a house in France we will make sure your monies are in the right place at the right time, we work hand in hand with you and Cle France.

For more information on the currency service I can provide please feel free to contact myself...

Ben Amrany from FC Exchange follow this link or phone and ask for myself and quote "Cle France" on 020 7989 0000.

You may contact me directly using this form (click here) with your requirement and I will explain the options that are available to you in getting the best exchange rate.  

Blog submitted by: Alex for The French Property Network - Cle France.

For everything you need to know about French property visit www.clefrance.co.uk

This week, Myriam El Khomri, France’s labour ministry, has been the focus of many headlines in France.

This week, she presented a bill that would reform current French labour laws, which is seen by many as the final push for large scale reforms during President François Hollande’s five-year term. The law would allow employees to work more than the current 35 hour work week without facing penalties.

It would also take away some of the power held by employees when they are dismissed improperly from their positions. While the 35 hour work week would still remain law, this would make it much easier for employees to work more.

El Khomri has said that the bill is to “adapt to the needs of business” and is, presumably, being pushed forward to fight against France’s high unemployment rate.

However, many politicians have spoke out vociferously against this bill, criticising François Hollande for giving more power to businesses instead of to French workers. Although Hollande is a figure of the Socialist Party, this bill has appealed to many right-wing parties and alienated Hollande’s Socialist base. Many others spoke out against these proposed laws when El Khomri:

“avait affirmé que le gouvernement assumerait 'ses responsabilités' au cas où il n’arriverait pas à mobiliser sa majorité à l’Assemblée nationale sur le texte, un avertissement interprété comme une menace de recourir à la procédure du 49.3 – qui permet au gouvernement de faire adopter un texte sans vote.”

(“affirmed that the government would take up its responsibilities in the case that they weren’t able to mobilize their party’s majority in the National Assembly in regard to the bill, a warning interpreted by some as a threat to apply “procedure 49.3,” which permits the government to adopt a bill without voting on it.”)

The bill will be formally introduced to cabinet members on March 9 2016, before heading into the National Assembly for voting.

What do you think?:

Could such a pro-business reform help France’s economy?

And, if so, should it be made into law without being voted on by the National Assembly?

Blog submitted by: David at The French Property Network - Cle France.

This blog was originally posted on The French Language Blog pages.

The pound has been on a rollercoaster of a ride against the Euro since the 10th of December 2015.

7 weeks later and the pound is still down 10 cents from the high period with not much indicating that we are going to see a significant rebound.

The loss fall from 1.42 down to 1.3150 at present is representing some very attractive selling Euro opportunities for those of you looking at repatriating funds back to the UK. Those of you though that are buying over in Europe may have agreed your properties when the price of buying the currency was stronger. If your completion is fast approaching and you are hoping for the rate to bounce back to the high 1.30’s in the near future then you may be in for a surprise. If you have recently agreed to buy a property then hopefully you have all budgeted at a worst case scenario as you always should do. If you can exchange your funds above that level at least you will be ahead of the game. 

Many clients have been locking in their Euros of late. The uncertainty of what is around the corner, in what has been one of the most volatile starts to a calendar year always makes clients question what if the rate does continue to fall. If you do not want to take that risk, forward buying your Euros is a wise way of knowing that you cannot lose out by a single penny regardless of what happens to the rates. And the best thing about it is that you do not need to settle the full amount of your funds straight away. 

The facts on why the pound has fallen:

Referendum:

Headline news at the moment. Scotland this week stated they would pull out of the union if this were to happen. The last Scottish referendum caused the pound to fall 4%. Could you imagine what would happen if we pulled out of Europe! The referendum may not be called until the end of 2017. That would be nearly two years of uncertainty for the British economy and the great British pound.

David Cameron may call it by the end of June or July but this is looking unlikely unless he negotiates exactly what he needs now.

Global uncertainty:

One of the world’s largest economies China is going through a slowdown. The growth has been one of the lowest for years now. This has sent shock waves through financial markets and the uncertainty of how things will pan out has led to comments from central banks that raising interest rates just now is not a wise move.

Oil Prices:

The price of a barrel of oil has fallen significantly over the last month. This does effect the UK economy as it is one of the main reasons inflation is so low. With the potential for Iran to flood the markets with even more oil the price could fall further. Inflation stays low and again it will be difficult for the UK to raise interest rates.

Inflation:  

The lower inflation gets or while it remains at these levels it effects the pound. We need inflation to rise to be able to hike interest rates. While interest rates are low the pound could continue to be sold off. Bank of England members just last week stated that all of the above gives the bank the opportunity to keep interest rates low for a longer period of time. 

The above to me means that it could be a while before the pound and more importantly against the Euro will significantly rise back to 1.40.

Trying to second guess the market can be very difficult and sometimes more is lost through indecision than a bad decision. Finding a currency specialist that can provide you with the information to help you decide when to buy the currency could be a great asset for you to have.

Do you want more information ?

So if you need to buy or sell sterling and would like to be kept up to date with all the latest data releases and exchange rate movements then feel free to contact myself Ben Amrany. If you are buying or selling a house in France we will make sure your monies are in the right place at the right time, we work hand in hand with you and Cle France.

For more information on the currency service I can provide please feel free to contact myself...

Ben Amrany from FC Exchange follow this link or phone and ask for myself and quote "Cle France" on 020 7989 0000.

You may contact me directly using this form (click here) with your requirement and I will explain the options that are available to you in getting the best exchange rate.  

Blog submitted by: Ben for The French Property Network - Cle France. 

For everything you need to know about French property visit www.clefrance.co.uk

Les nouveaux mots pour 2016 devoilés

Every year, new words are added to dictionaries around the world. Normally, these words are added due to new technological advances or cultural phenomena that describe what life is like in this new year.

In France, it’s not only verbs, adjectives, nouns, and adverbs that are added, but also proper names.

This is an honour that shows that a person has achieved a certain amount of fame and recognition. For 2016, the people to be included in French dictionaries are: the philosopher Bernard Henri-Lévy, the patissier Pierre Hermé, the French actor Pierre Richard, and the British actor Michael Caine.

According to this article, there are two requirements for inclusion in the popular French dictionaries, Le Petit Rousse and Le Petit Robert:

“Chaque nouvelle entrée a dû respecter, comme pour les éditions précédentes, l’un des deux critères suivants: être populaire et souvent repris dans les médias mais aussi être en rapport avec l’actualité sans risquer de disparaître rapidement.”

Here are some more words to be included for 2016 (some are self-explanatory):

selfie

vegan

boloss(e) (slang – an insult meaning that someone is silly or stupid)

baltringue (slang – a coward)

sape (slang – clothes)

And some expressions:

partir en cacahuète (“going peanuts,” means that something is going wrong/badly)

tendu comme un string (“tight as a string,” means someone is very stressed)

This article beautifully explains the importance of and the reason for the inclusion of some of these new words and expressions:

“Ces dictionnaires se veulent aussi le reflet de leur société, parfois même de l’actualité (c’est sans doute pourquoi Le Robert admet désormais le terme de "zadiste")"

"Ils suivent aussi une tendance, comme, par exemple la féminisation des noms. Au sein de ces rédactions du Larousse et du Robert qui se penchent chaque année, comme dans un conseil d’administration, sur l’utilité ou non d’intégrer un nouveau mot, on nous a affirmé que c’est suivre l’usage que de féminiser car il faut tenir compte du fait que de plus en plus de femmes accèdent aux postes traditionnellement tenus par des hommes"

"Tous deux utilisent ce qu’ils appellent une "banque de mots" tirés des journaux ou des livres, et leurs choix sont guidés par les relevés d’occurrences engrangés par leur observatoire de la langue française contemporaine”.

Blog submitted by: David at The French Property Network - Cle France.

This blog was originally posted on The French Language Blog pages.