Having moved to France in 2007 and purchasing a house and then fully renovating it. We returned to live in the UK in March 2012. Having put our french house on the market. We have let the house to a french man who we knew as he stated that he would look after it for us as it is way out in the sticks. he pays a minimal amaount of rent and has done the odd job required. There is no written contract and he states that should and when a buyer comes along he will move out. However he has made an offer way below the estate agents valuation which we have rejected. He has also on the strength of his offer obtained planning permission for a hanger to be built and is keen to build it. 1. The value of the house is now far less than when we bought it even including the value of the restoration, when we sell what tax do we pay on that.

2.Do we have to declare the minimal amount of rent he is paying as he spends most of that on repairs and maintainance.

3. What is the procedure now to have him out of the house.

I know that I should not have allowed him there in the first place but I just thought Security for the place and keeping it in a decent state of repair and presentation which it is for viewers. What a hoprrible situation. Any offers of advice appreciated. Thank you.

Hi,
If you sell for less than the purchase price plus admissible costs of work, there is no capital gains tax to pay.
You should declare the rents.
As to getting the tenant out, you have a problem. An oral agreement to let has all the same consequences in law as a written one--indeed it is more favourable to the tenant as he cannot be evicted for failure to pay rent or to insure the property. See this;

www.habitatindigne.logement.gouv.fr/IMG/pdf/notjur_bail_cle63d45c.pdf

It seems your tenant is well aware that he has the advantage , and so has made a low offer to buy.
You should consult a notaire.

No-one should ever, ever let out a house without a written contract. I'm afraid you won't be able to get him out without it costing you a fortune through the courts, and then where's your proof that you didn't agree he could stay until the day he died? So far as potential purchasers are concerned, people are very wary of buying properties with sitting tenants even if a watertight contract is in place so I think you'll find no-one will be interested in yours until he's out.

As I've mentioned on many forums for houses offered for free accommodation even then you must get a 'prêt de l'usage' signed up to protect both parties.