Your chance to own a "home away from home" in France, with plenty of personal use possible, plus all the benefits and advantages of the traditional "leaseback" program!
|St Gilles Croix de Vie
Pays de la Loire
2-3 bed houses/1-3 bed apts
| Castries, Languedoc
Semi detached village houses
If you would like to own a holiday property in France, without all the usual hassle involved in owning property abroad, but are put off the idea of "leaseback" because of the limited possibilities for personal occupancy, then another arrangement known as "light leaseback" could be the ideal solution.
What is light leaseback exactly?
Properties sold under the "light leaseback" scheme are the same properties and part of the same developments that are sold under the "classic" leaseback arrangement and the properties are managed and maintained in exactly the same way. As with "leaseback", you will be purchasing a furnished property and signing a legally binding commercial lease with a professional management company.
How much income would my property generate?
This depends on how much you want to use your property and when. Generally speaking, you will not be able to use your property for about one or two months a year in high season, usually July and/or August, when the operator will be letting it. Your income will depend on how many weeks you "give" the operator and your guaranteed yield will usually vary between 1 and 2% to cover the maintenance charges and will be indexed in the same way as income from a traditional leaseback arrangement. If you don’t want to use your property during other busy periods, such as the Christmas or Easter holidays, you can hand it over at these times as well and receive additional income if your property is let, but this will not be guaranteed.
The advantages of the leaseback program coupled with the flexibility of a second home…
What are the advantages from a financial point of view?
As with the traditional leaseback, you will receive a full refund of the 19.6% VAT on the property and your rental income will be tax free. Your maintenance charges and other expenses should all be covered by your rental income, although this will depend on how many weeks you grant the management company use of your property.
What are the drawbacks to this system?
Under this arrangement the property owner is expected to pay all the usual property charges that are covered by the management company under the classic leaseback program--maintenance charges, insurance, water and electricity, and council tax. These charges are generally met by the guaranteed annual income from rental.
Yes, I am interested in learning more about
Light Leaseback opportunities in France.
Please get in touch!