I have one leaseback property and I am in the process of purchasing a second .
The mortgage for the 2nd property has taken 6 months to arrange and the deal always was that it would also be for 100% of the value. My broker now tells me I can only get 90% as I already have one French mortgage. He has taken 6 months to tell me this .
Is this true?
Is there any companys that are recommended?
Think about this.
You have a holiday apartment rented out for around 10 years. It'll take a bit of beating over this time. Furniture, kitchen, bathroom, general decoration will all need updating. As the freeholder you want to continue to rent it out, but you won't as the state its in after the 10 years makes it virtually impossible. Hence the tenant cancels the lease. So either you pay for refurbishment or sell it. The tenant has an advantage over you if you want to refurb as you can't get access to the apt. to do the refurb.
Hello all.
I am a new member of the Forum, and new to the wacky world of
Leaseback.
I purchased an apartment in a Best Western hotel, Bussy St
Georges (near Disneyland Paris).
After a lengthy and difficult purchase (it took over a year), I finally
completed the purchase in April 2009 and promptly discovered within a
few weeks that the management of the hotel had gone out of business.
The hotel closed, and I have not earned a penny in rental income since
A federation of all the french owners associations in direct contact and discussion with the government was created last year :
The web site is in french but they can answer in english to any question. They success in modifiying some parts of the law.
The first step being always to create an association or to get in close contact with french co owners. SOme Irish have done this with good results.
Im an owner of a leaseback in the Cote d zur and have not
yet filed for my Vat refund on the purchase price
I brought it in 2007 and have been told that there is a 2
year cut off on vat reclaim in france on leasehold
properties.
I Have an accountant who has been doing my tax returns in
Ireland for another French property but only tax return
in ireland and not France, Also I asked him to deal with
this some time ago
Im now going in the morning to another French Tax
specialist.
Anyone has seen the very suspicious offer for Cap Med with 5% cash back, notaire fees paid, 100% finance etc?
It looks to good to be true especially when all serious developers in France don't give discount any more because they are selling fast with French investors (with Scellier tax incentive).
Hi there
Just wondering if anyone could give me some advice.
Having recently reviewed our original mortgage documents from 2006 for a leaseback in the South of France, I was horrified to realise that we are paying a fixed rate of 4.35% + tax instead of the 3.9% rate we agreed to at the time. I have the original e-mail outlining the 3.9% but unfortunately we signed the mortgage paperwork for 4.35%. The confusion for me I think was that 4.35% was the exact promised return from the management company running the leaseback and so I did not spot the error.
we have a leaseback in Brittany which should generate rental income from July 1st 2010 (finally built!). We have been sent declaration des revenus 2009 forms 2042 and 2042C by the company based in France dealing with tax and VAT. They have asked us to sign and post off to SIP des non residents France. Is this all we need to do? Not clear whether we are meant to fill any of more it in (like income!). They also sent us copies of fully completed forms 3517S, 2033A-D and 2031.
We obviously have had no income from the leaseback and live and work in the UK.
I have been told by my accountant I have to complete a SEI or something similar - anyone know about this and whether as a UK resident you have to complete them? I thought all you had to do was a income return.
Charliemain
Seamus,
There has been a lot of negative press about Leasebacks and being unable to sell them on etc. over the last while.
From reading some sites, it appears that mostly resales are picked up by the french, fairly quickly, as long as "Location, Location, Location" is well adhered to.
Can you answer some questions on leaseback resales.
Why would the French be the main source for resales. Do they have added tax breaks ? I assume there is a lot more commission to be made off new builds.
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