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Freehold property (dont buy leasebacks!)   Logged in as: Guest
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Goldberg Global

 

Posts: 39
Joined: 22/3/2007
 

Freehold property (dont buy leaseba... 
Hi, the further we have looked into this Leasebacks are to be avoided.

Freehold is the way to go.

There are some great deals with investments by utilising the Loi Robben where the government and an insurance bond gives you a guaranteed rental.

Like all french property, you can only purchase through a licenced french real estate agent.

Good luck, in purchasing in France, if we can help we will. thank you. Merci.
  Report Abuse |  Date 1/10/2007 11:23:47 PM
 
waring192

 

Posts: 2
Joined: 4/12/2007
 

RE: Freehold property (dont buy lea... (in reply to Goldberg Global) 
thanks
  Report Abuse |  Date 4/12/2007 2:16:16 PM
 
Admin

 

Posts: 48
 
From: London, England

RE: Freehold property (dont buy lea... (in reply to Goldberg Global) 
What would be your reason for not buying leasebacks?

_____________________________
  Report Abuse |  Date 5/12/2007 5:26:11 PM
 
Goldberg Global

 

Posts: 39
Joined: 22/3/2007
 

RE: Freehold property (dont buy lea... (in reply to Goldberg Global) 
Licenced French Real Estate brokers in Paris, have informed us that buying leaseback is going to be similar to buying Timeshare, it is a not for non resident buyers, it is a product for tax and accounting reasons only suited to French nationals.

People should consult French licenced experts to discuss the real impact of their investment decisions if they have brought.
  Report Abuse |  Date 31/1/2008 12:24:25 AM
 
Goldberg Global

 

Posts: 39
Joined: 22/3/2007
 

RE: Freehold property (dont buy lea... (in reply to Goldberg Global) 
Get good legal advice
You might not be able to sell for the term of contract.
The tenant may not leave.

SALE AND LEASEBACK TRANSACTIONS
These are known under various names such as "nouvelle propriété", "propriété allégée" (sale and leaseback) etc. These should not be confused with timeshares and are usually of new property and generally follow the system of sales off plan referred to above.
Properties sold subject to the leaseback scheme are often marketed as being sold with a "discount". Great care needs to be exercised as there is no "discount". There is, however, an immediate leaseback to the developer or to an associated company of the developer under a French commercial lease thereby making it possible to clawback TVA at 19.6% of the purchase price that would otherwise have been payable.
This clawback of TVA is therefore the greater part of any "discount" offered. In consideration of the commercial leaseback, the developer will often furnish the property, insure it, pay the outgoings, etc., and will permit the owner to use the property for say six weeks during each calendar year (such weeks being reserved in advance). Some schemes sometimes also offer an additional "discount" in the shape of a single rolled up rental payment for the full period of the lease (usually 9 or 11 years); other schemes offer a guaranteed percentage return on rental or some other formula.
These leaseback schemes are complicated and during the period when the commercial lease is running (9 or 11 years), it can be very difficult, for complicated legal and economic reasons, to resell a property purchased under this system. Furthermore, under the French system of commercial leases, there is no absolute guarantee that the tenant will relinquish the property at the end of the lease without an indemnity being payable by the landlord/owner.
You must obtain detailed and specific legal advice if you are considering one of these products.
  Report Abuse |  Date 10/2/2008 6:23:04 PM
 
Goldberg Global

 

Posts: 39
Joined: 22/3/2007
 

RE: Freehold property (dont buy lea... (in reply to Goldberg Global) 
A Place In The Sun - December 2007 - French Leasebacks
Posted on Friday, 21 December 2007 09:42AM
Question: I have read your article on Leaseback on page 43 of the October issue. I am considering buying a house in France soon and have heard of a French government sponsored scheme called Para-Hotelerie. What are the main provisions of this scheme and how does it differ from Leaseback. Where could I get a copy of
the full provisions of this scheme. Perhaps your readers may be interested in this subject as I have never seen it described in magazine articles. THANKS
Answer: Leaseback is not a French government sponsored scheme. The management company which is applying for the authorisation to run a Leaseback is not approved by the French government as a sound company. In order to get the label of leaseback and the authorisation to run a tourist activity in the building,
the company has to prove to the Prefecture that a minimum of apartments in the building are leased out to them and that a certain amount of commercial services are provided to tourists. A leaseback can be either a Residence de Tourisme or a Regime para-hotelier. Therefore a para hotellerie is a form of leaseback. The difference between the two different types of leaseback is the services provided to tourist renting out the
properties (for example, the provision of breakfast facilities, room booking service, presence or not of a restaurant etc…)
The International Law Partnership LLP
Solicitors & International Lawyers


< Message edited by Goldberg Global -- 10/2/2008 6:26:07 PM >
  Report Abuse |  Date 10/2/2008 6:25:24 PM
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