Thousands of UK residents own a second home or pied-a-terre in France. After Spain, it is the most popular destination for UK tourists. And though the economy is still struggling, there is good news for UK residents who have always dreamed of owning a home in France.

Only recently, the pound hit a 2-year high against the Euro. As you may know, France uses the euro, which means that all deposits and mortgage payments on new homes must be made in euros. It also means that UK buyers can exchange their currency at an attractive rate and that deposits and mortgage payment are cheaper than they have been in years.

Can anyone buy cheaper property in France? Like most European countries, France experienced a mortgage crisis, which sent home prices sliding to their lowest levels in years. While the market has rebounded a bit, prices are still quite low. Not to mention the fact that mortgage rates have been cut and are currently at historic lows in an attempt to encourage new buyers.

UK buyers may also want to look into purchasing leaseback properties. Many prominent French lenders have been offering free duty and taxes on leaseback properties in France. This fee is typically up to 8% of the property's value.

Not surprisingly, foreign interest in leaseback properties is at an all time high. In the first half of 2010 alone, the number of leaseback mortgages grew by 50 percent.