For non-resident buyers, it is not only possible to finance renovation and remodelling works with a French mortgage, it is often a core part of how banks structure higher-end transactions. However, it is important to recognize that securing this type of financing can be challenging. Not all French banks accept the additional risk of financing renovation work, and those that do often have very specific requirements regarding the nature of the project and the profile of the borrower.

The key to success lies in understanding which types of works can be financed, how lenders calculate your borrowing capacity, and what documentation they will expect from an international, high-net-worth profile. Below is a structured overview designed for expatriates in the US, UK, and Middle East, as well as French nationals abroad considering a return to France.

Acquisition + Works: One Global Loan

French banks will typically consider a single mortgage that includes both the purchase price and a clearly costed programme of renovation works. In practice, you present a global budget (price + notary fees + works), and the bank finances a percentage of that total. For non-residents, that usually means 70–80% loan-to-value, with a 20–30% cash contribution.

Types of Works that Can Be Financed

Lenders are generally comfortable with:

• Structural renovation and heavy remodelling: Reconfiguring layouts, adding bathrooms, upgrading roofs and façades.

• Technical upgrades: Plumbing, electrics, heating, and air-conditioning.

• Energy performance improvements: Insulation, windows, heat pumps, and solar-related works where attached to the building.

• High-quality fit-out that is permanently attached: Bespoke kitchens, built-in joinery, and integrated lighting.

Note: Purely decorative works (loose furniture, curtains, movable items) are usually excluded or must be financed from your own cash.

How Banks Treat Renovation in Their Risk Analysis

Financing renovations adds a layer of complexity to the bank’s risk assessment. Because many lenders are hesitant to finance these projects, they will overlay their usual criteria (stable income, conservative debt-to-income ratio, strong deposit) with intense scrutiny of the renovation aspect:

• Cost control: They want fixed, detailed quotes (devis) from recognized French contractors, not vague estimates.

• Value after works: For substantial projects, banks may look at the property’s expected value post-renovation to validate the total budget.

• Execution risk: They favor clear timelines, reputable builders, and projects that can realistically be completed within 12–24 months.

For HNW expatriates, a strong asset base and liquidity often help to offset the perceived project risk and encourage a bank to move forward.

Disbursement: How and When the Bank Releases Funds

Acquisition funds are released at completion, while renovation funds are generally drawn down in stages:

• An initial tranche at completion if the seller requires a portion of works to be prepaid.

• Subsequent tranches against invoices, progress certificates, or photos, depending on the bank’s policy.

You only pay interest on the sums drawn, which can be attractive for large luxury refurbishments scheduled over many months.

Documentation Non-Residents Should Expect to Provide

Beyond the usual non-resident requirements (proof of income, tax returns, bank statements), works financing requires:

• Detailed quotations from French contractors: Often at least two competing quotes for significant works.

• Architect plans and planning permissions: Required for structural changes or façade modifications.

• A clear works timetable and payment schedule.

• Proof of your own cash contribution to the works.

French banks appreciate professional, well-structured files; involving a local architect or project manager can be a significant positive signal.

Primary Residence, Pied-à-Terre or Rental Investment?

How you intend to use the property affects both your borrowing capacity and the lender’s interest:

• Returning French expats: Banks are generally more comfortable including renovation for a future main home.

• Holiday or secondary residence: The focus remains on your global debt ratio and liquid reserves.

• Rental investment: If works increase the rentable value, it can strengthen your case. In some structures, the interest on the works portion may be deductible against rental income.

Can You Finance Works After You Already Own the Property?

Yes, but conditions differ. Once you have completed the acquisition:

• Some banks offer “prêt travaux” (home improvement loans) secured on the property.

• Others may suggest a refinancing that wraps outstanding capital plus new works into a single facility, subject to updated valuation.

For large-scale luxury refurbishments, it is usually more efficient to structure the works into the initial acquisition mortgage.

Strategic Considerations for HNW Non-Residents

For globally mobile clients, financing through a French mortgage serves several objectives:

• Capital preservation: Retain liquidity for other investment opportunities.

• Currency diversification: Borrow in euros against a euro-denominated asset.

• Wealth tax structuring: Leveraging the property (including works) can reduce net taxable equity in France.

In summary, while it can be challenging to find the right lender, non-residents can successfully finance substantial remodelling and renovation through French mortgages. The key is to structure purchase and works together from the outset and to work with specialists who know which banks are currently active in the non-resident renovation market.