THE KNOWLEDGE


negative fluctuations and gives you certainty over the final price of your property. This is especially important if your budget is tight or you can’t afford a change in the rate. Market order: If you are more optimistic that the exchange rate might improve, a market order is another option available to you. This will allow you to track a desirable exchange rate and make the exchange automatically when the rate is reached. Market orders can be used


alongside a ‘stop loss order’, which can help protect your transaction from going below a specific rate if the market moves against you.


ONGOING PAYMENTS Once you’ve purchased your property, you might also need to make regular payments between France and the UK. It’s possible to set up a regular payment plan to automate the payments and remove the hassle of organising a transaction every month. Your payment will be collected via direct debit and sent automatically to your bank account of choice in France. You can also use a forward


contract to fix the rate on your regular payment plan for up to 24 months if you are concerned about the impact of negative fluctuations. Remember, expert guidance


to three months after you have paid the deposit. On the completion date, the signature of the title deeds takes place in front of a notaire in France. To make sure there are no delays, you’ll need to wire the final funds and any outstanding fees are wired directly to your notaire’s account before the day of completion. Because of the time lag


between paying your deposit and when your final payment is due, this time can be unsettling for buyers because exchange rates can fluctuate significantly. Fortunately,


there are ways you can protect yourself from risk using currency tools. Forward contract: A forward contract (which may require a deposit) is particularly popular with property buyers. It is an agreement between two parties to exchange two designated currencies at a specific rate for delivery or payment in the future. This allows you to fix the exchange rate as soon as the purchase is agreed upon, so the property’s price is not affected during those months between deposit and completion. It can also be used to take advantage


of a favourable rate movement that could allow the buyer to maximise the initial budget. Another advantage is that


you can use this tool even if you don’t have access to all the funds for your transaction. Forward contracts just require a deposit of up to 10% to secure the transaction. Locking in the rate removes the risk of


from a currency specialist is probably the most powerful asset in your arsenal. At Moneycorp, our dealers have decades of combined experience in understanding what moves the currency markets, and although no one can ever know by how much, we have the tools and expertise to help you navigate the process with confidence. ■


Mar Bonnin Palmer is Head of Partnerships at Moneycorp mar.bonninpalmer@ moneycorp.com moneycorp.com


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FRENCH PROPERTY NEWS: March/April 202487


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