The Lyon market and its financing
A house with land in the west of Lyon: what the bank reads, and what it does not read in a flat
Energy audit, sewage treatment, itemised works, soil survey, land division, swimming pool: what a lender reads about a house before financing it.
For a house, the bank reads what no building management company will tell it: the condition of the structure and its energy audit, the sewage treatment, the planning rules for the land, the soil risks and the regularity of the annexes. The lending rules do not change; the documents do. Works and compliance measures are itemised by quotations before the purchase offer, to be included in the loan.
By Sandy MASCART, mandataire d'intermédiaire en opérations de banque et en services de paiement ORIAS 26000541 sous le mandat de CDV PATRIMOINE & ASSURANCE (ORIAS 14005573)
Key points
- The bank applies the same lending rules to a house as to a flat; what changes is the property documentation.
- In the west of Lyon, a house is not the common property type everywhere: it is rare in Tassin-la-Demi-Lune or Écully, but the majority in Dardilly or Limonest.
- A house rated E, F or G is sold with an energy audit, which itemises work scenarios: a starting point, not a quotation.
- Without connection to the public network, the inspection of the sewage treatment system is mandatory at the point of sale, and its compliance is itemised before the offer.
- A divisible plot of land is only a hypothesis until the division is authorised: the financing plan covers the entire property.
A house is financed in the same way as an apartment, but the lender assesses the land, the ground, the utilities, the outbuildings and any works. Gather the right documents, in the right order, and your application will be processed more smoothly. The local context: Lyon property market.
Is the house really the common property type in the west of Lyon?
Not everywhere. According to INSEE, fewer than one in five dwellings is a house in Tassin-la-Demi-Lune, and one in five in Écully. It predominates in Dardilly, Limonest, Saint-Didier-au-Mont-d'Or or Saint-Genis-les-Ollières.
| Commune | Share of houses among dwellings, 2023 census |
|---|---|
| Tassin-la-Demi-Lune | Fewer than one in five |
| Écully | One in five |
| Sainte-Foy-lès-Lyon | Fewer than one in four |
| Francheville | Four in ten |
| Craponne | A little less than half |
| Charbonnières-les-Bains | Half |
| Limonest, Dardilly | A little more than half |
| Marcy-l'Étoile | Six in ten |
| La Tour-de-Salvagny, Saint-Didier-au-Mont-d'Or | Approximately seven in ten |
| Saint-Genis-les-Ollières | Three in four |
Where the house is rare, the lender is more willing to have it valued: the property valuation by the lender. Prices: the budget by commune. Commune pages: Tassin-la-Demi-Lune, Écully, Sainte-Foy-lès-Lyon, Craponne, Charbonnières-les-Bains.
What does the bank read in a house, and not in an apartment?
The structure, the sewage system, the planning of the land, the ground and the outbuildings. Each subject has its document. A missing document becomes a prudent assumption.
| What the house adds | The document that addresses it | Who provides it |
|---|---|---|
| Energy performance of a house rated E, F or G | The energy audit, in addition to the surveys | The seller |
| Wastewater | The sewage system inspection report | The seller |
| Natural and technological risks | The state of risks | The seller |
| Extension, subdivision, construction of an outbuilding | The planning regulations for the plot, a planning certificate | The town hall, at your request |
| Boundaries of the land | The boundary survey report, if it exists | The seller, or a surveyor |
| Planned works | Quotes from contractors | You |
Read the technical survey file before proposing a price.
Why to quantify the works before the purchase offer?
The bank lends on quotes, and on what is planned from the outset. The energy audit of a house rated E, F or G gives a first order of magnitude, not a quote.
- Size the project with the audit.
- Obtain quotes from contractors: the works financed in the loan.
- Choose the term: sufficiently heavy works lengthen it.
Rapportée au coût total de l'opération.
- En vigueur depuis le
- Source
- Décision D-HCSF-2023-6, art. 1er — Légifrance
- création de surfaces habitables nouvelles ou de surfaces annexes
- modernisation
- assainissement
- aménagement des surfaces habitables ou des surfaces annexes
- réalisation de travaux de rénovation énergétique
- En vigueur depuis le
- Source
- Légifrance
See financing an energy inefficient property, the green zero-interest loan, and launch the loan affordability simulator with and without works.
Individual wastewater treatment: what it changes in the financing plan
A check at the point of sale, and sometimes dated works: a non-compliance must be rectified within the year following the deed.
An unfavourable report? Have the cost of bringing the system into compliance calculated before the purchase offer and include it in the financing plan. The eco-PTZ may, subject to conditions, finance it.
Is a soil study required to purchase an existing house?
No, the resale of a built house does not require one. However, clay shrink-swell should be assessed during the viewing.
Look for cracks in the façade, a terrace that is coming away, doors that stick, and disintegrated paving. The map can be consulted on Géorisques.
Also read the flood prevention plan for the Yzeron. Outside the flood zone, it regulates runoff: an extension, a driveway or a swimming pool may require a retention structure. The risk statement locates the property.
Is a divisible plot of land worth more in the eyes of the bank?
Not as long as the division remains a project. The financing plan covers the entire property.
- A prior declaration is generally sufficient; a development permit in certain sectors.
- A surveyor marks out the plots.
- The planning scheme sets its rules: the PLU-H in the Métropole, that of each municipality elsewhere (les Vallons du Lyonnais).
Before the offer, request an operational planning certificate, which is free of charge. To build: the individual house contract.
Pool, garage, outbuilding: what do the annexes add to the file?
What their permits prove. Request them from the seller: the valuer cross-checks the property against its documents.
A pool affects local taxes and the development contribution. An outbuilding without permits? Consult the notary before the preliminary sale agreement. A doubtful boundary? Have it surveyed before calculating the figures.
In what order should you gather the documents?
- The technical diagnostic file, including the audit, drainage system and risk assessment.
- The seller’s council tax and the permits for the annexes.
- The local planning regulations, and a certificate if you intend to extend or subdivide.
- The quotes for the works.
- The funding plan: price, fees, works, term.
Sale in progress? The bridging loan in the Lyon west. Income, outgoings, deposit: what the bank looks at.
Sandy MASCART, a mortgage intermediary working under mandate and registered with ORIAS under number 26000541, operates in Lyon and the Lyon west. I assemble these documents and present the file to lenders, who make the decision alone. Local or online · the documents · the fees.
Spotted a house? Create your file or have its property surveys reviewed by telephone.
Sources
- Insee — Dossier complet − Commune de Tassin-la-Demi-Lune (69244)
- Service-Public.fr — Quels sont les diagnostics immobiliers à fournir en cas de vente d'un logement ?
- Service-Public.fr — Audit énergétique en cas de vente d'un bien immobilier dit « passoire thermique »
- Service-Public.fr — Diagnostic immobilier : assainissement des eaux usées (assainissement collectif et non collectif)
- Service-Public.fr — Assainissement des eaux usées domestiques
- ecologie.gouv.fr — Retrait-gonflement des argiles dans la construction
- Service-Public.fr — Diagnostic immobilier : état des risques
- DDE du Rhône — Plan de prévention des risques naturels d'inondation (PPRNi) de l'Yzeron, règlement
- Service-Public.fr — Quelle autorisation d'urbanisme faut-il pour diviser un terrain ?
- Service-Public.fr — Certificat d'urbanisme (CU)
- Plan local d'urbanisme et de l'habitat de la Métropole de Lyon
- Service-Public.fr — Installation ou construction d'une piscine privative
- Service-Public.fr — Bornage de terrains
Read next
- Mortgage in Lyon: one file, several banks
- Funding renovation work: yes within a mortgage, no with a standalone renovation loan Including renovation works in a mortgage: conditions, required quotes, release against invoices. And why a standalone renovation loan is outside my mandate.
- Building with a CCMI: financing the land and the house in the correct order One loan for land and house: the order of signatures, the documents the bank requires before its offer, and funds released as the build progresses.
- Buying in the Vallons du Lyonnais: what leaving the Métropole changes for your financing Brindas, Grézieu-la-Varenne, Vaugneray and five other communes: zero-interest loan, transfer duties, planning, council tax. What leaving the Métropole changes.
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