Leave the chateau to the already-rich
Ever fancied buying a French manoir to feel like the rich and famous? You may need to be already rich to afford it.
The realities of buying a large manoir or grand house in the French countryside are coming home to roost for many Brits who saw their dream chateau in a property brochure and allowed the dreams to cloud the reality of owning and maintaining such a beast. Unless you have a football team for a family, a ready fortune or delusions of grandeur why would you want one?
Despite the bald facts (and costs) of ownership that scream 'DON'T DO IT', hordes of Britons are still selling up and crossing the Channel enticed by price rises of 48% in the three years to July 2005, and a worrying number of them are hoping to buy a chateau. One reason is because medium-sized village houses and small rural properties do not look that cheap anymore, whereas big houses or chateaux do by comparison: similar sized properties are often less than half the price they would be in Britain.
There are an estimated 40,000 chateaux in France, encompassing everything from royal palaces and 14th-century castles through to historic, grand family homes. In some areas, smaller houses often count as chateaux too: in Provence they are referred to as 'mas', in Dordogne they are 'chartreuses' and in Brittany, 'manoirs'. You can begin your new life of grandeur for under €750,000. Starting prices for habitable but shabby chateaux are around €600,000 in the Auvergne — similar to prices for one-bedroom flats in London. The further from Paris and the south of France you search for a property, the less you will pay. Other considerations that will push up the asking price include proximity to mountains, the sea, airports or TGV train lines and good communications.
But be warned: the low purchase price hides a sting in the tail. The costs of renovating a chateau back to habitable condition and maintaining it are huge. Buyers have spoken about buying property for a quarter of equivalent properties in the US but having to invest a larger sum to renovate it. Major considerations must be the roof, heating (and ongoing costs which can be astronomical) and plumbing. So if you're still tempted, make sure you have fully checked the building's architectural integrity, its location, orientation and potential problem areas on site.
Assuming you've overcome all the problems outlined, what next? Well, enjoy it but you have to pay for that enjoyment with large heating costs and wealth tax payments to the French government every year. Any ideas about opening a very grand house to the public to recoup some money may be a non-starter: one couple wanted to open their 75-room chateau to the public but French regulations would have forced them to make costly changes, such as providing protective screens, fire detectors, fire-escapes, emergency exits and paid security guards. All of which made the scheme unviable. True, owning a chateau will give you beauty, history and an inflated sense of your own importance (if that's your thing), but they're only really a bargain if you are already rich.
Think carefully before securing other debts against your home.
Your home may be repossessed if you do not keep up repayments on your mortgage.
The overall cost for comparison is 7.1% APR. The actual rate available will depend upon your circumstances. Ask for a personalised illustration. There may be a fee for the mortgage advice. The precise amount will depend on your circumstances, but we estimate it will be 1.5% of the loan amount with a minimum fee of £500 added on to the loan.
Mayfair Consulting Limited is an Appointed Representative of The Mortgage Times Group Limited, 279 Tottenham Court Road, London , W1T 7RJ , which is authorised and regulated by the Financial Services Authority no. 303007.
