What is a credit work?
As part of the consumer credit , the credit works is a credit affected. Here are the essential criteria of a credit works:
Summary of the page
- 1 What is included in the funding
- 2 Regulations governing the credit works
- 3 Work-to-work credit
- 4 Possession of a principal residence and related tax benefits
Its value must be less than or equal to 75 000 €
The duration of the credit must be equal to or greater than 3 months.
If the amount of the work credit is greater than this value, it will be a real estate loan.
The financing of a work credit often comes from network banks, specialized institutions or some pension funds or certain mutuals.
What is included in the funding
The loan for work applies especially in the case of the expansion of a home or its renovation but also if you plan to improve. It is therefore used to carry out enlargement work, renovation; beautification, compliance.
You also have the choice between:
– Do the work yourself
– Seek the help of a professional in the field.
Regulations governing the credit works
The code of consumption was more accentuated with the security law of August 1, 2003, particularly on the information given during advertisements and during the issuance of the offer of credit works.
The law requires that advertising must provide information on the actual value of the credit and issue a prior offer, different from the prospectus and which is to be given to the borrower. The offer will last 15 days and will contain:
1 / the name and the address of the lender
2 / the name and address, with those of the sureties
2 / the type of work to be done
3 / the amount of work
4 / the interest rate of the loan
5 / the duration
Works credits, in most cases, are short-term credits ranging from 3 months to 5 years. It will also be communicated the number and the amount of deadlines per month, the total cost including the interest, the fees and the guarantees in addition to the lender insurance. The guarantees consist of the mortgage registration, the lending privilege or the deposit. Sometimes a credit insurance work is underwritten, an explanatory note must also be transmitted. It is important that the prior offer is separate from any documentary copyright.
It should also be noted that the borrower has a period of 7 days to retract, and this takes effect upon signature of the offer. The purchase is refused in two cases:
– When refusal
– When there has been retraction within 7 days.
If you have decided to turn to a bank to obtain a credit work, it is essential to ensure that the seller indicates clearly on the order form the object that is in this case a credit purchase.
The pass-travaux is a loan from Action-Logement organizations. The purpose of this is to provide the opportunity to maintain or improve housing. It mainly concerns companies with a non-agricultural vocation, having more than 10 people. However, it is governed by conditions and requires that work be performed on a principal residence.
The amount of the credit can reach a ceiling of 8000 € when there is no resource requirement and 9000 € if the conditions are issued. The rate of this credit is 1.5%, insurance is not included. A rate that is a real advantage.
Possession of a principal residence and related tax benefits
A tax credit was set up under section 90 of the 2005 Finance Act, when it comes to expenses related to equipment that promotes sustainable development.
The tax credit applies to homeowners as well as to tenants who are free or not. The work to be undertaken can only affect the main residence and must promote energy savings.
The borrower will also need the services of a professional. The credit is refused on the works are carried out only by the owner or the tenant himself. The amount of the expenses must not exceed 8000 € for a single person and 16 000 € for a couple in order to benefit from a tax credit. The increase is 400 € for a dependent child, 500 € for a second child and 600 € for a third.