Doing work on your property is important for its preservation. Few are the properties that do not benefit even a slight refresh over a period of 10 years. The works are a necessity for the living conditions remain optimal throughout the years or simply to sell his property at the best price.
However, the works represent a cost and are not accessible to all. The work credit allows owners with the lowest incomes to benefit from the work they need. The credit works represent a boon for the real estate sector, as well as for any individual eager to save on their energy consumption or just wanting to increase their own comfort of life.
What Is Work Credit?
As the owner of a property, you want to do work in your home but do not have the amount of money required to realize your project? In this case, you need to take out a work credit. To learn more about the credit works you will know all the devices put in place and you could benefit from, better manage your application for credit work and finally better negotiate your credit work.
To begin, we must know that there are two types of credit works:
- The classic credit works, proposed by credit organizations (through the credit works assigned or credit work in the form of personal loan);
- The credit works helped, set up by the state but proposed by the credit institutions with which an agreement was signed.
A credit works consists of putting at your disposal, subject to acceptance by the lender, a set amount of money, usable at any time with which you can carry out your work. The amount of money made available to you in the framework of the subscription to a work credit will allow you to finance the realization of works by your care or by means of a specialized company (masonry, coating, insulation, carpentry, structural work …).
Different services can be financed by the credit works: renovation, earthworks, construction, expansion, insulation or decoration.
Attention, before any realization of a project requiring a credit works, several criteria are to be taken into account:
- In case of co-ownership, if the renovations affect the common areas, it is necessary to obtain the authorization of the other owners.
- 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.
What are the different things to know before creating an extension?
It is essential to know the different urban planning rules applicable to your project. As previously mentioned, it will be necessary to go to the town hall of your commune, more precisely, to the urbanism service. Know that these rules are different depending on the municipality in which you live.
Collecting this information is mandatory to complete your project. Also, if you wish, thanks to your credit works, to enlarge your accommodation so that it passes to a habitable surface of at least 170 m ², you will have no choice but to call on an architect for the realization of this extension project.
Indeed, the credit works exists in many forms. Depending on the importance of the work to be done, a different work credit may be proposed. Finally, to prevent possible incidents, a borrower insurance will certainly be offered. This insurance generally covers death, disability, temporary incapacity for work and loss of employment.
Different ways of financing
Finance work related to energy performance with a credit works
The rising cost of energy is driving a large number of homeowners to work on the energy performance of their homes. Electricity prices rose by around 2% as of January 1, 2016. To help these owners undertake work, the government has put in place a work credit adapted to different situations:
- Eco-loan at zero rate (eco PTZ)
The zero-rate eco-loan is one of the flagship measures of the Grenelle de l’environnement and is today considered as universal credit.
This type of credit works is for any owner of a housing prior to 1990, occupying or lessor, without means test, performing a bunch of eligible work. By housing, it will be granted only one eco-loan rate 0. In contrast, a single borrower can benefit from several eco-loans zero rate: one for his own principal residence and one for each housing it leases as a principal residence. It should be noted that the condominium associations can also access this kind of work credit, as long as the work is done on the common areas. Each co-owner can individually apply for a zero-rated eco-loan for the work carried out by the co-ownership.
The maximum amount of this credit work is capped at 30 000 $ maximum, refundable without interest. The repayment period, meanwhile, is set at 10 years, and can be increased to 15 years for the heavier renovation work.
The works must be carried out by RGE (Recognized as Guarantor of the Environment) companies, except for non-collective sanitation works.