Before putting your property up for sale, it is strongly advised to have it evaluated by an estate agency. The English markets are changing rapidly and since the announcement of Brexit, prices have been subject to large variations. Once this evaluation has been done and the selling price determined, you can call on a professional to market your property. On average, agency fees vary between 1.5% and 3% exclusive of tax of the selling price of the property (VAT: 20%) and depend on the type of sales mandate. As in France, the commission is due at the final sale of your property and is in addition to the “net seller” price. The real estate agent will take care of all the steps for the marketing, will take professional photos, will diffuse your property in the adapted media, will take care of the visits and will take care of the realization of the diagnostics (note that you are not obliged to call upon the service of the agency to have these diagnostics realized even if often their negotiated rates are interesting).
In France, the seller is obliged to have these diagnoses carried out before the property is marketed. In England, these diagnostics are only compulsory for the sale but only at the time of the signature of the sales contract. Nevertheless, it is customary to have these diagnoses carried out (by a “solicitor”) for the sale, as in France, in order to save time during negotiations.
Tip: It is very important to have a real estate agency accompany you when your property is put up for sale in London. In addition to guiding you through the sale, the agency will accompany you through the obligatory technical and legal procedures. We have developed an expertise on the London market. Contact us for more information and to meet a professional selected by Story’s.
Taxation on the sale
Before selling your property, it is important to anticipate the various taxes that will eventually be payable. The question of taxation is central to the realisation of your future projects, in England or abroad.
If you sell a property in England as a French tax resident, you will have to pay this tax in England but also part of it in France because you will depend on the rules defined in the tax treaty signed between France and England. This one will define the rules of taxation and not double taxation. In the case of capital gains tax, France will be able to claim an amount of tax corresponding to the difference between what you have to pay in England and what you would have had to pay if the property had been located in France. In other words, the final total amount you will pay will be the amount of French tax on the capital gain.