What is the renovation works loan?
Undertaking renovation work in a dwelling allows it to be valued. The renovation work loan is intended to help finance a renovation project, a development or any other type of construction related to real estate. The renovation work loan will, for example, finance the expansion or creation of a room, dig a pool, build a veranda, redecorate your home or save energy. As part of a renovation work loan, the bank or credit organization makes available a sum of money to an individual who wishes to carry out work in a property he owns. The renovation works loan can be used for basic work or comfort. This loan may be granted for a principal residence, for a second home or for a rental property. In case of co-ownership, if the renovations affect the common areas, it is necessary to obtain the authorization of the other owners. It is important to note that most interior renovations are not subject to authorization (plumbing, electricity, interior decoration, etc.). However, any creation of a new living space of less than 20 m² with a minimum height of 1.80 m will be subject to a declaration of work (to ask the marie). As for the creation of more than 20 m², the application for a building permit will be mandatory. In view of a possible renovation work loan, there are, as an indication, estimates of the budget of work planned for a dwelling, it is necessary to provide about 150 € / m² for light renovation works, 1000 € / m² if This is to redo all paintings, electricity and bathrooms, and up to 1 400 € / m² for structural work (openings, creation of partitions, etc.). In order for these estimates to be as accurate as possible, the best solution is to have companies quote accurate quotes.
Are there different ways to get a renovation work loan?
There is, in fact, a fairly wide range of home renovation loans. Depending on the importance of the work done, different loans renovation work may be proposed.
The personal loan
The personal loan, commonly referred to as consumer credit, is most certainly the renovation work loan best suited for work requiring only a small amount of money. Proposed by all banks and credit institutions and accessible to all (subject to the eligibility conditions of each bank), the personal loan can be subscribed for any type of work, whether the work is carried out by a company or no. The amount of this renovation works loan is capped at 75,000 euros, for a maximum duration of 10 years. The money needed for the work is released as soon as the loan application is accepted. In addition, the Total Effective Rate (APR) of the loan is reduced because there are no fees. The personal loan also does not require the subscription to a death and disability insurance. If the borrower wants to pay off his loan early, he will not have any penalty fees. Be careful, even if the overall Effective Rate (APR) of the loan is reduced by the absence of the application fees, you should know that the interest rate applied may be higher than that of other types of renovation work loans. To know also, you have a right of retraction during 14 calendar days from the signature of the contract work renovation works.
The home loan is the renovation work loan best suited for work requiring the borrowing of a large sum. In most cases, this renovation works loan is taken out when you want to buy a property but it also allows you to finance everything related to real estate. Real estate loans therefore do indeed finance work. To subscribe to this type of renovation work loan, the work will have to cost more than 75,000 euros. The duration of repayments can range from 10 to 30 years. This renovation works loan allows the borrower to benefit from a lower overall effective rate than for the previously mentioned personal loan. In the case where the borrower has already taken out a mortgage loan for the purchase of a property, monthly payments may be globalized. Nevertheless, it is important to remember that unlike the personal loan, the bank and credit institutions require the subscription to a death-disability insurance and can also take guarantees (mortgage, deposit …). Fees are also charged. As for the prepayment of this renovation work loan, it will cause penalties.
Housing savings plan (PEL) and housing savings account (CEL)
Holders of a home savings plan (PEL) or a home savings account (CEL) can benefit from a housing savings loan. Interest rates are often lower than those of other home improvement loans. In addition, borrowing in this way makes it possible to receive the state premium provided for these investments. In the case of this choice of renovation work loan, the works must:
- Either modify the living space of the accommodation (extension, development, division …)
- Either contribute to the improvement, conservation, equipment or sanitation of housing
- Either allow energy savings.
This type of renovation works loan does not support the decoration of housing, such as paintings, wallpapers, floors …
For this home savings loan to be granted, the Home Savings Plan must be at least 4 years old, compared to only 18 months of seniority for the Home Savings Account. Regarding the Housing Savings Account (CEL), 37 euros of interest must have been accumulated by the borrower to be granted the loan for improvement works or 22.50 euros for work to save money. ‘energy.
The amount of the renovation works loan depends on the total interest earned on the LEC or ELP and the chosen repayment period. There is no minimum, but a maximum of 23,000 euros with a home savings account against 92,000 euros with a home savings plan.
Eco-loan at zero rate (eco-PTZ)
The zero-rate eco-loan, a commitment from the Grenelle Environment Forum, is used to finance the energy retrofits of a home, which will subsequently prevent excess energy consumption as well as greenhouse gas emissions. greenhouse. Eco-loan zero rate is one of the most advantageous renovation work loans because it is not subject to any interest, they are directly supported by the State. The amount of this renovation works loan can be up to € 30,000 and its maximum repayment term is 15 years. To benefit from this type of renovation work loan, the work must be carried out by a company with a quality sign Recognized as Environment Guarantor (RGE). The zero-rate eco-loan can be paid at one time on the basis of the detailed estimates of the planned works, or in several installments on the basis of the invoices of the works carried out, transmitted at any time before the closing date. eco-loan at zero rate.
Here are the conditions to fulfill to benefit from this type of renovation work loan:
- You can apply for a zero rate eco-loan regardless of your resources;
- You can benefit from a zero interest eco-loan that you own or occupy your home.
- The dwelling must have been completed before 1 January 1990.
Attention, the same housing can not benefit from more than one eco-loan at zero rate.
For this renovation work loan to be granted, the works must concern at least 2 of the 6 actions of the following work package:
- efficient insulation of the roof,
- high-performance insulation of walls facing the outside,
- efficient insulation of windows and doors to the outside,
- installation or replacement of heating or hot water production,
- installation of a heating system using renewable energies,
- installation of hot water production using renewable energies.
It may also be the rehabilitation of the non-collective sanitation system by devices that consume no energy. Non-collective sanitation refers to individual domestic water treatment facilities. These devices concern dwellings that are not served by a public sewage collection network and therefore have to treat their own wastewater before discharging it into the natural environment.
Finally, this kind of renovation work loan can be granted if it is work justifying the achievement of a minimum overall energy performance of housing. This measure applies only to owners whose housing was built after 1 January 1948.
The works defined in the context of a thermal study must make it possible to lower the energy consumption of your dwelling until:
- an energy consumption of less than 150 kWhEP / m² / year, if your home consumes, before the works, more than 180 kWhEP / m² / year
- an energy consumption of less than 80 kWhEP / m² / year, if your home consumes, before the works, less than 180 kWhEP / m² / an.
For each type of work, there is a financing and thanks to these different loans renovation work, many owners will finally be able to choose to stay in their home rather than move. top