Hello,
Can i ask what may be a stupid question. At what stage can a sale/leaseback property be sold as a freehold , not a touristic apartment.
I am 10 yearts in and lease is up for renewal . I have not signed anything yet. I would like to offload if possible.
Regards,
Sean
Hi ,
I am hoping to try and sell my leaseback in Cagnes sur Mer (Nice). Any recommendations for a reliable and experienced lawyer and Estate Agent in the area?
Sean
Regards,
Sean
Hi, Id welcome advice on an evolving situation.
I am in year 8 of a 9 year lease on a Tourism Residence with 90 lots managed by Eurogroup. I was considering giving notice and paying the eviction fee as payments are always late and Eurogroup have history of offering significant reductions on second term rents and I could make more income and control my apartment, if it went to classic ownership.
Hi I'm new to the forum but not to the albatross which is French style lease back!
Having got to the point that I and for that matter no one else at Belleme were being paid any rent I found i was unable to honour my mortgage commitments to MICOS bank.
I have just received a pdf from Lagrange/SMAS Tourisme re renewing my lease, with amendments. One of which is as follows:
Dans l’article 5 – Loyer, alinéa 5.1 – Loyer en numéraire – C- Révision du loyer : il est prévu une indexation du loyer en numéraire basée sur l’indice INSEE du coût de la construction, les parties conviennent de remplacer cet indice de référence, par l’Indice sur les Loyers Commerciaux (ILC) plus adapté aux baux commerciaux.
Le mode de calcul pour l’application de l’indexation triennale fixé dans le bail initial sera conservé.
Considering my exit strategy. I'm in the second lease period which expires 2023 . At that point 18 years will have expired with my mortgage clear at 20 years.. Like others the quandry I find is whether to take out of the leaseback scheme - I believe in this situation I may/ will be responsible for potential break payment to Nemea depending upon the contract/ Grench commerical law? Failing that sell with leaseback in place and price will be forced down by yield calculation but I'll not have to repay any TVA. I sense I need to get a lawyer to review. Any recommendations?
Following growing pressure from the EU, DGCCRF - the French Anti-Fraud Department - carried out some investigations whose results were published in April least year.
DGCCRF investigators reviewed the selling arguments displayed on websites and marketers and, in a second stage, considered the issues encountered by leaseback owners. To this end, the investigators visited 20 leaseback resorts; they also gathered the views of leaseback owners-investors.
Some leaseback owners are finding themselves in a situation where the lease comes up to its term and, having repeatedly had to face late rents and lack of communication from the French leaseback company, they are considering non renewal.
Many of these are aware of the potential eviction fee, but are unsure as to how much advance notice is to be given, how the break notice should be served and how much the leaseback company is likely to claim.
Does anyone have any experience of a tourist operator being forced to leave a site due to the requirements of Article D.321-2 of the Code de Tourisme?
This article states that in order to operate a Residence de Tourisme, there must be a minimum of 55% of the properties under lease.
Also, what are the implications for owners in this event?
There is a large growing pressure group in Ireland and England fighting for justice in respect of leasebacks.
I recommend that you do three things (all of which I have already done) and I know a lot of leaseback owners have done:
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