FRENCH LEASEBACK PROPERTY

The leaseback scheme is unique to France, and was introduced by the French government as an initiative to encourage second home buyers to release their property onto the rental market thus promoting tourism and easing the excess demand for holiday rentals.

The scheme enables you to buy your dream home at a reduced price (you are reimbursed or do not have to pay the 19.6% VAT). You will also receive a guaranteed rental income, averaging between 3 to 6% from a large holiday company, who will rent out your property for 9 years, sometimes more. At the end of the agreed period you get your property back, good as new, having received 9 years of index linked rental, and with 9 years capital appreciation.

You may agree on certain weeks of the year when you are allowed use of the property at no or reduced cost.

You are the full freehold owner of the property, and you are entitled to sell it at any time.

All the utility bills are the responsibility of the management company. However as the property owner the annual "taxe foncière" is still your responsibility. (This is zero for the first two years if it is a new property).

The upkeep and general maintenance of your apartment is the responsibility of the management company too and they have to return your property at the end of the lease in perfect order.

The scheme is extremely popular and good developments tend to sell out extremely quickly.

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