Resale - how much would we actually get?

i would be interested in hearing from anybody who actually sold a second hand lease back ,

i have 3 and need to sell 2 to keep the banks from closing me down,

i am willing to sell what i actually paid for it,

but i am afraid there is no re sale market what so ever,

any help much appreciated

We are in the final stages of selling our apartment. We are actually selling at a loss on paper but because the exchange rate is much more favourable to us than when we bought it we should still make a profit taking into account the VAT refund.

I see you are based in Ireland so I presume the exchange rate benefit won't apply to you. However, I can tell you that the estate agent we used specialises in leasebacks and leaseback resales.

If you want further details you can contact me at pmlhw@aol.com.

Hi Westside.

I am living in Ireland and I am just after completing the process of selling a leaseback property.The whole process took just over a year, from advertising the property to closing the sale of the property and having the funds in my bank account.

I have been following this forum for a couple of years and have decided to post this information here now to give people some hope.After reading some of the stories here I was really starting to believe there was no market out there for seconhand leaseback property.

Westside, if you want to pm me, I can share some more of my experience with you.

Rasher

Hi Rasher,

I really could benefit from discussing Re sale of French Leasback with you for general advice how can I contact you directly.

Thanks

PUL

to give people some hope i have just signed papers for the sale of my apartment/lease back in the alps,and making a profit if all goes to plan,

give me a pm if you need any info

Well done westside. I hope all goes according to plan.

Rasher.

We are in the process of selling a leaseback in Paris and

are wondering what does the Notaire do with the money

he/she receives from the new purchaser.

The notaire gets the sales proceeds and the first thing

to be done is to pay the amount outstanding on the loan

on the property to the relevant bank.

What happens then? - does he give the balance remaining

to the selling agent (the selling agent then takes their

commission and pays the balance to us) or does the

notaire divide the balance remaining between the selling

agent and ourselves based on the Mandat de Vente.

Any help appreciated.

Hi John,

The notaire pays off the outstanding loan and the selling agent's commission and sends the balance to you.

Regards

Sheridan

Sheridan

Thanks for getting back to me.

In our case we haven't signed a Mandat de Vente so how

will the notaire know how much commission to pay. We had

agreed 10% through e-mails but we never actually signed

anything. I presume the notaire will take 1% for

themselves and also have to pay 5% stamp duty.

We greatly appreciate your help.

Regards

John Mc

I am not an expert but I would assume that the notaire would want to see something in writing about the commission.

Regards

Sheridan

I have sent an e-mail to the notaire to find out exactly

what she does with the sales proceeds. I will post an

update when I receive her reply.

Regarding the rental income, we receive the rent three

months in arrears. If we sign the contract to sell in

December we will still be due rent for Oct/Nov/Dec to be

paid in January. Will we receive this directly from the

management company as usual, or will it go to the

notaire, and from the notaire to us.

Again, thanks for all your comments.

We sold on 31 October having received the rent for June, July & August as usual on 15 October. The management company will pay us the rent we are entitled to for October in January.

However, you might need to clarify this with the notaire. Our deed of sale stated that the buyer and the seller would make their own arrangements with regard to the apportionment which seemed unsatisfactory and vague to me so I got the notaire to obtain assurance from the management company that they would be responsible for paying us.

Regarding the transfer of the lease, we are presuming that

the new owner will continue to lease the property to the

same management company.

Will the selling agent arrange this, and give the

management company adequate notice thereby ensuring that we

don't incur any penalties. Or should we inform the

management company of our intention to sell the property.

Hi , I am just at the stage where I have to sell my leaseback in Languedoc. Can anyone advise where I might advertise this investment. After a very rocky beginning we have just signed with a management company for the next 9 years.

hi marie

the best bet would be the local estate agents,as that is where people will look first if they like the area,

that is how i sold mine in the alps,

you will have to price it very right,maybe enen below what you paid for it if the management co are not in the top list of man co,

beat of luck with it

Thanks so much , I will investigate which estate agents are the best. I think the new management company has a good reputation but we are at very early stages. One of the issues is that we have agreed a stepped rental from the management company, with rent tied to profits. Has anyone come accross this before?

Not all local estate agents area fully familiar with the leaseback system.

We sold ours through an agent who specialises in leasebacks & leaseback resales. See http://www.creation-developpement-patrimoine.com/

I agree with Westside that you may have to sell at a loss but if you bought some years ago you may be able to take advantage of the improved Eur/£ exchange rates.

Good luck

Sheridan

Many thanks for that information. Unfortunatly I live in a Eurozone area

Can anyone help me with the issue of the VAT repayment to the French Government in the case of me selling the leaseback while still involved in the lease? Do you know the situation? Do I have to refund the VAT Pro rata according to the time that I have owned the apartment?

Thanks,

Marie

My understanding is that if you sell a leaseback with the lease ongoing, then there is no TVA to repay because the lease and TVA situation is transferred to the new owner.

It is only when the lease is broken that the TVA would have to be repaid, pro rata for the proportion of the 20 years left beyond the period of ownership.

This is my understanding, but I'm sure someone else may correct me or confirm this

Thanks for that information. I presume that the price I sell at will have to incorporate the fact that TVA may become repayable in the event of a future default. I am concentrating on the sale at the moment so, M

I understand that you are now no longer liable for a pro-rata VAT refund if you sell your leaseback within 20 years. I do believe that this has been changed so you can now sell your leaseback at anytime without having to refund the VAT? The new purchaser however must continue the leaseback arrangement.

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You still need to pay French capital gains tax at 28.1% if you sell in the first 15 years, but with tapered relief at 10% per annum after 6 years of ownership.

Is this correct?

Dear Kazz,

Have you visit french-capital-gains-tax.co.uk website regarding all

queries on CGT ? I think that the rate change from January.

Good luck

JC