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Construction of the main residence

Early redemption in case of construction of the main residence

According to French law

Deadline: 6 months for the PEE (company savings plan) / None for the PERCO (collective retirement savings plan)

Eligible schemes: PEE (company savings plan) / PEG (group savings plan) / PEI (inter-company savings plan) and PERCO (collective retirement savings plan) / PERCOI (inter-company collective retirement savings plan) and PERECO (collective retirement savings plan created by PACTE law) / PERECOI (inter-company collective retirement savings plan created by PACTE law)

Supporting documents to accompany the redemption request

Trigger event date: date of signature of construction contract or contract for services

  • Planning permission
    • Or If implied (tacit) acceptance by the local authority, implied planning permission issued by the local authority

And

  • Signed construction contract
    • Or Signed contract for services

And 

  • If a loan is taken out:
    • Date, signature and credit institution stamp on the declaration on honour (attestation sur l’honneur)
    • Or Dated and signed finance plan, issued by the credit institution, and showing the personal contribution made (e.g. loan offer accepted by the employee and signed by the credit institution)

Trigger event date: date of the last settled invoice for structural work

  • Planning permission
    • Or If implied (tacit) acceptance by the local authority, implied planning permission issued by the local authority

And

  • Settled invoices for the purchase of materials necessary for structural work

And 

And

  • If a loan is taken out:
    • Date, signature and credit institution stamp on the declaration on honour (attestation sur l’honneur)
    • Or Dated and signed finance plan, issued by the credit institution, and showing the personal contribution made (e.g. loan offer accepted by the employee and signed by the credit institution)

Trigger event date: date of the last accepted quote, dated and signed

  • Planning permission
    • Or If implied (tacit) acceptance by the local authority, implied planning permission issued by the local authority

And 

  • Accepted, dated and signed quotes (provided a payment in advance has been made), including the signature and stamp of the firm engaged

And

And

  • If a loan is taken out:
    • Date, signature and credit institution stamp on the signed declaration on honour (attestation sur l’honneur) prepared by the beneficiary
    • Or Dated and signed finance plan, issued by the credit institution, and showing the personal contribution made (e.g. loan offer accepted by the employee and signed by the credit institution)

Additional information

Regarding the PEE (Company Savings Plans), your request must be received within 6 month (on the PEE) from the signature of the individual home construction contract (CCMI). However, beyond 6 months, if the construction contract indicate one or more suspensive conditions, the starting point of the period fits with the last suspensive condition raising date. The early repayment request could then be formulated in the coming 6 month from the achievement of the last suspensive condition in support of all the suspensive conditions achievement receipts.

Conditions 

A single release situation takes the form of a single payment, and it cannot therefore be phased or paid in instalments.

The amount released is capped at the amount of the personal contribution.

The monies released must be used only and entirely for financing construction of the main residence.

The monies must be returned if the plan fails to come to fruition.

Excluded events

  • Second home
  • Purchase of land only

Questions / Answers

According to Article R.111-26 of the French Construction and Housing Code, structural work (structural components) means:

a)      Load bearing elements contributing to the stability or soundness of the building, and any other element inseparable from or forming an integral part of such elements;

b)      Elements forming the walls, roof and sealing the construction, excluding any moving or mobile parts thereof.

These elements thus include in particular:

  • Wall coatings but excluding paint and wallpaper 
  • Staircases and floors, together with any coating in a hard material 
  • Fixed ceilings and fixed partitions 
  • Those parts of pipes, conduits and ducts of any kind that are housed inside the walls, ceiling or floor, or embedded in the mass of a coating, but excluding those merely sealed or affixed 
  • Frames for goods and passenger lifts 
  • Frames and housing for doors, windows and glazing

Yes, if one transaction includes both the purchase of the land and, and the same time, construction of the building, the cost of the land can be added to the cost of construction to determine the total cost of the acquisition.