Brits ‘lock-on’ to leaseback

French leaseback property is becoming popular with UK BTL buyers, according to VEF…

French leaseback was created by the French Government in order to promote the leisure business with holiday villages. When you buy a property in a “leaseback” residence you then sign a 9 or 11 years contract with a management company who guarantee you the rent for the time of the contract (also called a lease). Normally you are able to use the property 1 to 3 weeks per year at no extra cost. You can expect a return on investment from 3 to 6%.

The main advantage of a French leaseback property is that you get the VAT back (19.6% in France). It gives you a discount on the purchase price and if you decide to keep it for 20 years it is one of the best investment in France for non-residents.

A spokesperson for VEF commented: “Following the recent Property Investor Show, we have seen a huge increase in demand for French leaseback property. The safety of the French property market combined with the discounts at purchase and guaranteed rental income has made many UK buy-to-let buyers turn to France for investment”.