Updated in July 2026.
Have you found your dream home but haven't yet sold your current one? Or perhaps your property is finally on the market, but you have no idea where you'll be living next? How can you finance a new purchase before receiving the proceeds from your sale? More importantly, how can you avoid finding yourself without a home between completions—or, even worse, paying two mortgages at the same time?
Selling one home in order to buy another is one of the most complex property transactions to organise because it combines two interdependent sales, each with its own timetable, buyers or sellers, financing requirements and potential uncertainties.
This article explains the three main strategies available, how a bridging loan works in 2026, the essential legal clauses needed to protect your transaction, the tax treatment of capital gains, and a practical timeline to help you move smoothly from one property to the next.
Before doing anything else, the first step is always the same: know the true market value of your property. A free online property valuation will provide an initial price estimate within minutes. To refine your selling and buying strategy according to your personal, financial and geographical circumstances, contact your local Capifrance property consultant, who can support you throughout both sides of the transaction.
In summary
- There are three possible strategies: sell first then buy, buy first then sell, or use a bridging loan to finance your purchase while waiting for your current property to sell.
- A bridging loan typically finances 60% to 80% of the estimated value of the property being sold, over a period of 12 to 24 months, with interest rates generally ranging from 3.40% to 4.20% in 2026.
- Including a sale contingency clause in the purchase agreement for your new property protects you if your current home does not sell.
- Capital gains on the sale of a main residence are completely exempt from tax, regardless of how long you have owned the property.
- A realistic property valuation is the cornerstone of a successful financing strategy.
- Careful planning and temporary accommodation solutions can help bridge any gap between selling your current home and moving into the next.
The three main strategies for selling and buying at the same time
If you want to sell your current home while purchasing another, three main approaches are available.
Sell first, then buy
This is generally the most financially secure option.
You sell your current property, receive the sale proceeds and then begin searching for your next home with a clear and confirmed purchasing budget.
Advantages
- No risk of paying two mortgages simultaneously.
- Stronger negotiating power with the seller of your future property, as you are viewed as an unconditional buyer with no need for a sale contingency clause.
- Complete certainty about your purchasing budget.
Disadvantages
- You may need temporary accommodation if you do not immediately find your next property.
- Pressure to purchase quickly can sometimes lead to compromises in your choice of home.
- Additional costs associated with moving twice, such as storage facilities or short-term rental accommodation.
Buy first, then sell
This option is attractive to homeowners who have found the perfect property and do not want to miss the opportunity.
However, it means financing both properties simultaneously until the existing home is sold.
Advantages
- No pressure when searching for your new property.
- Only one move, directly from your current home to the new one.
- Greater flexibility when negotiating the purchase, without being dependent on the sale of your existing property.
Disadvantages
- Requires either substantial savings or the use of a bridging loan.
- A genuine financial risk if your current property takes longer than expected to sell or achieves a lower sale price.
- A temporarily higher debt ratio, which may make obtaining finance from the bank more difficult.
A bridging loan: the middle-ground solution
A bridging loan is specifically designed for this situation.
It enables you to borrow against part of the estimated value of the property you intend to sell in order to finance the purchase of your new home before the sale has completed.
This is the most common solution for homeowners who wish to buy before selling, without tying up all of their savings or missing an attractive buying opportunity.
Advantages
- Allows you to purchase immediately without waiting for your existing property to sell.
- Only one move is required.
- A regulated financing solution offering clear protections for borrowers.
Disadvantages
- The cost of borrowing, including interest, arrangement fees and security costs.
- Financial risk if the property is not sold within the agreed timeframe.
- Requires a reliable valuation of the property being sold, as the bank bases the loan amount on this estimate.
Bridging loans in 2026: how they work, borrowing limits, duration and interest rates
A bridging loan remains the most widely used financing solution in 2026 for homeowners wishing to buy a new property before completing the sale of their current one.
How is the loan amount calculated ?
The bank first obtains a professional valuation of the property to be sold, carried out by an estate agent, property consultant or surveyor.
It then advances typically between 60% and 80% of the property's estimated value.
If there is still an outstanding mortgage on the property, the remaining balance is deducted before calculating the amount that can be borrowed.
The formula is straightforward:
Bridging loan = (Estimated property value × Lending percentage) − Outstanding mortgage balance
The bridging loan then forms part of the overall financing package for your new purchase, alongside any personal deposit and, where necessary, a conventional mortgage if the purchase price exceeds the value of the property being sold.
Loan term and interest rates in 2026
A bridging loan is a short-term financing solution, generally granted for 12 months, with the possibility of one renewal, allowing a maximum duration of 24 months.
If the property has still not been sold after this period, the borrower's situation can become significantly more challenging.
In 2026, bridging loan interest rates generally range between 3.40% and 4.20%, depending on the lender and the borrower's financial profile.
The French usury rate, set quarterly by the Banque de France, establishes the maximum legal interest rate that banks are permitted to charge.
During the term of the bridging loan, borrowers generally repay interest only, while the capital is repaid in full once the property is sold.
This limits the monthly financial burden, although it does not eliminate the overall cost of the financing.
What happens if your property is not sold in time?
The greatest risk associated with a bridging loan is that the existing property fails to sell within the agreed period.
Several outcomes are then possible:
- renewal of the bridging loan, usually for a further 12 months, with additional fees;
- reducing the asking price to speed up the sale;
- converting the bridging loan into a standard repayment mortgage, resulting in substantially higher monthly repayments because the capital must then be repaid gradually.
In the most difficult situations, the lender may require early repayment, forcing the homeowner to find alternative sources of funding.
For this reason, a realistic valuation and an asking price aligned with the local market are absolutely essential to securing the entire buying and selling transaction.
Worked example: selling a property for €300,000 to buy another for €400,000
Let's consider a practical example.
You own a house valued at €300,000, which has already been fully paid off, and you wish to purchase a new property costing €400,000.
Calculating the bridging loan
The bank agrees to provide a bridging loan representing 70% of the estimated value of your current property.
€300,000 × 70% = €210,000 bridging loan
The €210,000 is released to finance part of the purchase of the new property.
Assuming a 12-month loan with an average interest rate of 3.80%, the interest cost would be approximately:
€210,000 × 3.80% = €7,980 in interest over one year
Depending on the loan structure selected, this interest may either be paid monthly or deferred until the property is sold (partial or full payment holiday).
The overall financing plan
To finance the €400,000 purchase price:
- Bridging loan: €210,000
- Remaining amount to finance: €400,000 − €210,000 = €190,000
The remaining €190,000 would typically be financed through a conventional mortgage and/or a personal deposit.
Once the original property is sold—ideally within twelve months—the €300,000 sale proceeds are used to repay the €210,000 bridging loan in full.
The remaining €90,000 can then either reduce the outstanding balance of the new mortgage or be retained as additional savings.
This example clearly illustrates the benefit of a bridging loan: it allows you to secure a new property immediately without waiting for your current home to sell, while maintaining a clear view of your overall borrowing position.
Protecting your purchase: the sale contingency clause
Whether or not you use a bridging loan, it is strongly recommended to include a sale contingency clause in the preliminary purchase agreement for your new property, particularly if your financing depends—even partially—on selling your existing home.
Why include this clause?
A sale contingency clause makes the purchase conditional upon the prior—or simultaneous—sale of your current property.
If your home is not sold within the agreed timeframe, you are entitled to withdraw from the purchase without penalty and recover your deposit.
The clause therefore protects buyers from committing to a purchase they may ultimately be unable to finance.
It is separate from, but complementary to, the mortgage finance contingency clause, which is mandatory whenever the purchase is financed by a mortgage.service-public.fr,
According to the information published on this protection is mandatory under French law.
The seller cannot remove, restrict or circumvent it, and if the mortgage is not approved within the agreed period—typically 45 to 60 days—the sale is automatically cancelled without penalty for the purchaser.
How should it be drafted and negotiated?
To be effective, a sale contingency clause should be drafted with precision.
It should:
- clearly identify the property to be sold;
- specify the minimum acceptable sale price below which the sale will not be considered satisfactory;
- set a reasonable deadline—typically two to four months—for completing the sale;
- include provisions allowing the deadline to be extended if necessary.
However, it is important to remember that this clause is not always easy to negotiate.
From the seller's perspective, it introduces uncertainty because the transaction may collapse if your own property fails to sell.
In highly competitive markets, many sellers simply refuse to accept such a condition.
This is where the assistance of an experienced property professional becomes particularly valuable, helping strike the right balance between protecting the buyer and making the offer attractive enough for the seller to accept.
Taxation: capital gains on your main residence
One of the major financial advantages of selling your main residence in order to purchase another concerns the tax treatment of any capital gain realised.
A complete exemption, regardless of ownership period
Unlike a second home or rental investment, the sale of a main residence benefits from full exemption from French capital gains tax, regardless of how long you have owned the property.
The only requirement is that the property must be your principal residence at the time of sale—or that you occupied it until it was placed on the market, with the sale taking place within what is considered a reasonable period, generally around one year.
As confirmed on the official service-public.fr website, this exemption considerably simplifies the financial structure of a sale-and-purchase transaction.
You do not need to set aside funds to pay capital gains tax or complete any complex tax calculations, allowing you to reinvest the entire proceeds of the sale into your next property.
The special case of outbuildings and second homes
Outbuildings that are immediately connected with and necessary to the main residence—such as a garage, cellar or staff room—also benefit from this exemption when sold at the same time as the principal property.
By contrast, if the property being sold is a second home or a rental investment, any capital gain is taxable under a scale that gradually reduces the tax according to the length of ownership.
Full exemption is reached only after 22 years for income tax purposes and 30 years for social contributions.
It is therefore essential to establish the property's tax status before the sale, particularly if you have recently changed your principal residence or if the property has previously been rented out.
Practical advice: planning your timeline, negotiating deadlines and temporary accommodation
Beyond the financial and legal aspects, successfully selling one property while buying another depends largely on careful planning.
The ideal timeline
Ideally, you should begin preparing four to six months before your planned move.
A typical schedule might look like this:
Month 1
Obtain a reliable professional valuation of your current property.
This is essential for determining both your purchasing budget and, where applicable, the amount you may be able to borrow through a bridging loan.
Months 1–2
Put your property on the market with a realistic asking price based on local market conditions, helping to avoid unnecessary delays.
Months 2–4
Begin actively searching for your new home while your current property is being marketed, allowing both transactions to progress simultaneously.
Months 3–5
Sign the preliminary sale agreements for both properties—ideally within a similar timeframe—and include a sale contingency clause if required.
Months 5–6
Complete both transactions before the notary, aiming to synchronise completion dates or negotiate delayed vacant possession where appropriate.
Negotiating deadlines with both buyer and seller
Negotiating completion dates is often one of the most important factors in achieving a smooth transition.
You may wish to:
- ask the buyer of your current property to agree to delayed vacant possession, allowing you to remain in the property for a short period after completion, sometimes in return for an occupation payment;
- negotiate a later completion or move-in date with the seller of your future property while your own sale is finalised;
- build a reasonable safety margin into your timetable rather than relying on perfect synchronisation, which is often difficult to achieve in practice.
Temporary accommodation options
Even with careful planning, the two transactions may not line up perfectly.
Several practical solutions can help bridge the gap:
- a furnished short-term rental, ideal for a few weeks or months;
- staying with family or friends, an economical solution provided it remains temporary;
- using a storage facility to house your belongings during the transition;
- negotiating delayed vacant possession with the purchaser of your property, often the simplest and most cost-effective option, as it avoids moving twice.
Work with a local Capifrance property consultant
Selling your current home while buying another is a delicate balancing act requiring careful coordination between valuation, marketing, property search, deadline negotiations and financing.
An experienced property professional can save you valuable time and help you avoid costly mistakes, such as:
- an unrealistic valuation;
- an incorrectly structured bridging loan;
- failing to include a sale contingency clause;
- or relying on an overly optimistic timetable.
Capifrance property consultants have in-depth knowledge of their local markets and support many homeowners through this type of dual transaction every year.
They can help you:
- set a realistic asking price to encourage a quicker sale;
- identify suitable replacement properties even before your current home is sold;
- negotiate effectively with all parties involved.
For tailored advice, contact your local Capifrance property consultant to develop a selling and buying strategy that matches your personal and financial circumstances
Conclusion
Selling your home in order to buy another should never be left to chance.
Choosing the right strategy—sell first, buy first or use a bridging loan—understanding the financial mechanisms involved, protecting yourself legally and carefully planning the timetable are all essential to avoiding costly surprises.
Key points to remember
- Obtain a reliable valuation of your property before taking any further steps.
- Choose the strategy that best matches your financial situation and attitude to risk.
- If you use a bridging loan, work closely with your bank to structure it appropriately and prepare for the possibility that your property may take longer than expected to sell.
- Include a sale contingency clause whenever your financing depends on selling your current property.
- Take advantage of the full capital gains tax exemption available on the sale of your main residence to maximise your purchasing budget.
- Plan your timetable carefully and consider temporary accommodation options in case the two transactions do not align perfectly.
FAQ
Can I buy a new home before selling my current one?
Yes. This is entirely possible, particularly by using a bridging loan, which allows you to finance part of your purchase while waiting for your existing property to sell.
However, this solution requires a reliable property valuation and sufficient borrowing capacity, as the bank will temporarily assess your finances while taking both properties into account.
How long does a bridging loan last?
A bridging loan is generally granted for 12 months, with the possibility of one renewal, allowing a maximum duration of 24 months.
If the property has still not sold after this period, you will usually need to renegotiate the financing with your bank, either by extending the bridging loan, converting it into a standard repayment mortgage or reducing the asking price to achieve a quicker sale.
What happens if my property does not sell before the bridging loan expires ?
Several options are available.
The bank may agree to extend the bridging loan, you may reduce the asking price to accelerate the sale or the loan may be converted into a conventional repayment mortgage, resulting in higher monthly repayments.
This is why obtaining a realistic valuation from the outset is so important.
Is a sale contingency clause mandatory?
No. Unlike the mortgage finance contingency clause, which is automatically included whenever a purchase is financed by a mortgage, the sale contingency clause is optional.
It must therefore be negotiated with the seller of the property you intend to purchase if you wish to protect yourself should your own home fail to sell within the agreed timeframe.
Do I have to pay capital gains tax when selling my main residence?
No. Any capital gain realised on the sale of your main residence is fully exempt from French capital gains tax, regardless of how long you have owned the property, provided it genuinely qualifies as your principal residence at the time of sale—or until it was placed on the market.
Where can I live if the two transactions are not completed at the same time?
Several options are available, including:
- a furnished short-term rental;
- temporary accommodation with family or friends;
- using a storage facility while you are between homes;
- negotiating delayed vacant possession with the purchaser of your current property, allowing you to remain in the property for a few weeks after completion.
What is the maximum amount available through a bridging loan ?
Banks generally lend between 60% and 80% of the estimated value of the property being sold, after deducting any outstanding mortgage balance.
The exact amount depends on the lender, the quality of the valuation and the borrower's overall financial profile.
Is it better to sell before buying, or buy before selling ?
There is no single answer.
Selling first provides greater financial security but may require temporary accommodation.
Buying first avoids moving twice but usually means owning two properties simultaneously, often with the support of a bridging loan.
The right choice depends on your financial circumstances, the local property market and your tolerance for risk.
An experienced property consultant can help you determine which approach is most appropriate for your situation.
Author :
Frédéric Rémy – Director of Commercial Performance
A real estate professional for several years within the Capifrance network, I would like to share with you some essential advice to help you succeed in your real estate project with the support of our advisors.
