English
FrançaisI am very fortunate to have some very good assistance in dealing with my leaseback matters and tend to keep most things close to my chest on my personal matters.
However if any of you receive a bill for the above, do not pay it without taking proper advice!
Most ex-leasebackers who rent privately (of which I am not one) are being asked to pay the above tax meaning that you operate your property rental as a individual business (enterprise). All seems fine you may think.
What they will not tell you is that in fact if you sign or pay this bill you are infact entering into an Enterprise function with unlimited liability! Thereafter every Tom, Dick and Harry can start making claims on you and you will have to defend each and every single one!
Also it may be prudent to make sure your accounts are being submitted to trully reflect your tax position. It has come to my attention this week (with proven copies sent to me) that certain operators are "glamming up" tax returns to not necessarily truly report correct tax positions.
To sum it up, do not sign anything and make sure that those representing you on tax issues are trustworthy. Do not provide signatures to blank copies of returns. Only sign returns once they have been fully completed and checked. Initial the bottom of each page and keep a copy.
Another small tip for those of you being offered free advice on finding new management companies..........do not take it. It is a con. Do not sign with a new management company unless the old lease has been cancelled as you will be breaching the existing lease and will forfeit all losses. Nobody should be exiting a lease without a court judgement or compensation.
If all else fails guys I guess you could stop paying your mortgages!
Happy New year!
Mutley
Hi Mutley,
who assisted you with your leaseback problems, as I could do with a bit of assistance myself?
Also what sort of claims would people make you if you privately rented your apartment?
regards Olly
Olly
Its not about renting privately its about being classified as an Enterprise for taxation purposes!
As for help with your leaseback problems, don't bother engaging a French lawyer, get one in the UK and let them deal with France. You will find it easier fighting a lawyer for negligence etc in the UK where you know the law or can at least deal with the same language.
My lawyer has reviewed my entire file over the last 18 months and has ruled the sale and leaseback as against civil and commercial law in France. I am currently waiting to be taken to court but it is proving to be a very long wait.
I did warn those involved that 2011 would be a year for blowing the lid on French Leasebacks and I start here. Next call is HMRC to try and get them to contact all leaseback owners over their French accounts to have them auditted to make sure the accountants are doing their jobs right. They are not!
Mutley
Hi Mutley,
I still don't understand what sort of claims one might face if one were classified as an enterprise.If it was a claim for an accident for example, wouldn't the public liability insurance cover it?
Surely there must be thousands of enterprises in France who do not find themselves defending endless claims.
regards Olly
Olly
You need to do some research on this and relate it to your situation.
However it needs to be remembered that you are an unlimited entity and if you have exposure to or need to worry about exposure it needs to be avoided.
Forget about tripping over the patio slab and think more about those who may have suffered a loss on your property such as banks, developers and sales agents fighting between themselves! It will be alot easier to pin a loss on your Enterprise than suffer the loss between them.
Mutley
Hi everybody,
My first time ever on any thing like this. From desperation.
My wife and I bought a leaseback through a company called Imoinvest. The leaseback property is, in effect, a studio in s small boutique hotel in Paris - called the Kube.
The operators are the Murano Group. At the time we purchased it the management company was listed as Hotels de Paris - but this was changed shortly after we bought. We had no problem getting the VAT refund. Murano paid the rent for a few months and for the past two years or so have not paid. They have never answered a single letter or email. They have never sent any information regarding the Kube. They have been taken to court and have been told to pay - but they still do not pay. There are many other owners in the same boat - all waiting to be paid.
The Bank (Barclays) is completely unsympathetic - we asked about a mortgage 'holiday' and were told we would have to go through a legal procedure to get that - costing about E2,000- So we continue to pay the mortgage... just.
The question is - can anyone recommend a lawyer in Paris capable of taking a case actually to court? They must be able to operate in the court - a bit like a barrister, I guess.
I find much of the advertising for leasebacks is OTT - 'the safest investment in Europe' - 'guaranteed rental return' - all a bit of a joke really.
Cheers
ChrisandJane
ChrisandJane
Will shortly be launching a new website. All of your answers will be on their. Will contact you when launched. In the meantime do nothing, say nothing and sign nothing.
Mutley
Mutley, can you keep me informed of your new website too please.
Regards
Sheridan