English
FrançaisNemea state that they are losing money on my development and wish to cut the current rent by 20 % , on a renewed lease ( should enough people decide to renew with them.)
Its not in the existing lease that they have the right to do so. Are they entitled to do this ?
Also, I wrote to them a year before the end of the lease staing we wished NOT to renew, but because it was not vis a registered letter they say it was not valid. Thus we may have to re sign, but at a at the lower rate?
Would be keen to hear of any similar experiences. (Outside of this, nemea have been a good operator with money arriving on time since the lease began 9 years ag0 )
Richie
I also have a leaseback with
I also have a leaseback with Nemea for Le Nevez and I am in the same situation. Is there any group of owners that we might contact? If we could cooperate then we might be able to get advice etc.
Fergus
We were with Residhotel and
We were with Residhotel and they went bankrupt..huge loss of rental income which they never paid not to mention the legal fees etc that went with trying to bring them to court etc. There is zero protection for investors in leaseback so my advice to you is go with the lower rental offered ..otherwise its a nightmare to secure another company..all a scam the whole leaseback thing! better to get some money than none. We did manage to get a new mgt company but with reduced rentals and payment structure but we lost a lot too from unpaid rentals over about a year and then the residence was closed once Residhotel went bust and we managed to secure new company!
good luck!
/Martina
I am with Nemea in Les Rives
I am with Nemea in Les Rives Du Lac outside Avignon. 6 years into our 11 year agreement Nemea forced us to take a 25% cut, if enough people agreed to go with it. They hit us with a clause from the French Code of Commerce which basically said they had the right to pull out of our 11 year lease agreement if was not was not working out financially for them.....................funny how our Notaire did not pick up on this at the outset. I would say Nemea are chancing their arm but who is going to go to the expense of challenging them in court. The market had taken a big downturn, you can see this by the holiday prices on offer, so you just take the pain. Nemea hold all the cards. Usually something that looks to good to be true turns out to be too good to be true i.e. you though you were going to own an Investment or holiday home in France and someone else was going to pay for it.
Our contract is up 1st Q 2015 and it will be interesting to see what Nemea will do........a new agreement or walk away??? ACTIIM are our syndicate
Gerry C
Nemea Rent (Les Terrasses de
Nemea Rent (Les Terrasses de L'Ocean) Moliets et Maa
Nemea contacted me today (28 November 2014) stating that they are seeking a 30% rent reduction on all apartments from the 1 January 2015. They state that they have been losing money for the last 3 years. They are including a better fortunes clause for owners to receive additional rent in the event that turnover increases in the coming years. The current lease runs for 11 years to 2019.
Would be interested in other owners views .
Paddy
If anyone Irish person as an
If anyone Irish person as an issue with les rives du lac in Saturnin you can call me on 085/8801073.
Regards,
Frank Farrell
Hi
Hi
I've been with Nemea (Green Side near Antibes) since 2005. The location was good as it's in the Sophia Antipolis business park and has a Nice University campus that was built a few yeasrs later so we have tourists , business users and the potential for student lets in the future if we don't renew with Nemea. I paid ( after the VAT was refunded) €150K (@ 1.43 to the £) for a one bed appartment.
Nemea have been pretty good, we renewed in 2014 on the same terms as they were making a small profit although we had to pay a refurb fee of about €5K, which they have taken out of the rent over 3 years. It brings in just over €6K in rent. I see there was a similar property in the Olympe closer to the centre on Antibes that sold for €89K with a 5% rental so according
to my calculations the appt is worth about €130K.
We used to take a week in August each year as well so on balance it's not been a horrendous investment especially considering the exchange rate at the moment, if things continue at present I'll leave it to chug along.
Andy