WHAT IS LEASEBACK?
A leaseback means that the property is sold and leased back to the developer
or a letting agent working with the developer. French law is designed to
encourage the proliferation of letting properties to allow a claw back of
the 19.6% purchase tax that is due on any new build. This is offset against
the 5.5 % purchase tax paid by those renting the property from the letting
agent and over a period of 20 years will match the 19.6% saved.
Special - Leaseback France
has two developments, a
coastal leaseback development near Marseille, and one
by St Tropez in the Var where the management agency has agreed to sign
legal attestations waiving their right to any form of commercial compensation
should the owner not renew the lease. This is a special for our customers
and is only possible on a limited no of lots on each development, as, by
the same laws that give the development the leaseback tax breaks, the bulk
of the development must continue as managed short let accommodation into
the future. This should have a favourable effect on resale values.
The normal length of contract that has to be established
with the letting agent is of 9 -11 years. The property has to be let out
for a minimum qualifying 4 weeks a year, although you can give as many weeks
as you like to the leasing company. most schemes work on the letting agent
having the property for the bulk of the year and the owner having use of
it for 2 - 6 weeks, in these cases there is a guaranted annual return.
The Leaseback Scheme is not timeshare, you are the absolute and outright owner of your property.