Your French Property offers a fully comprehensive service free of charge
Your French Property are specialist providers of French property to the overseas market. Whether you are seeking a leaseback investment, a holiday home or a permanent place of residence in France we can help. Due to our long standing relationships within the French property industry, we are able to cherry pick the best properties as they come on the market and represent the major developers and estate agents in France. Our dedicated team of bilingual staff are on call to help you locate the perfect property and to assist throughout your purchase, simplifying the process and helping you free of charge.
Leaseback
Become a French property owner and receive a 19.6% VAT rebate on new build leaseback property, whilst earning a guaranteed rental income from an established management company.
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Information on Leaseback property
An Introduction to French Leaseback
The Leaseback scheme has been in operation in France for over two decades and was introduced by the French government to increase the quantity of quality holiday accommodation available in areas capable of attracting more tourists, whilst also addressing the need for quality city centre accommodation for both mature students and businessmen.
The leaseback scheme enables you to purchase freehold a property which you then earn a rental income from. When leaseback schemes are sold, there is a pre-selected property management company to whom you "leaseback" your property for a period which usually ranges between 9 and 12 years.
During the period you lease your property to the property management company, you have the peace of mind of owning property outright and benefiting from a rental income, yet none of the worries related to letting out and maintaining the property. This is one of the reasons why the leaseback scheme is so popular.
Depending on the development you can usually use your property for a certain number of weeks per year for holidays (can be between 2 ? 6) although this differs from development to development. Some developments will offer owners discounted use (usually ranging between 10 ?25%) instead of free weeks whereas others (usually those located in cities offering a higher yield) may not offer any use either free of charge or at a discount.
The rental income tends to range between 2.5% and 6% per annum depending on the property, whether you will be taking your holidays in it and where it is located. Different property management firms offer different rental incomes, but in general the less you use your property the higher your yield will be.
What's more, the French government agrees to offset the payable VAT (TVA) on the purchase price against that charged to the short let customers of the rental management company. This means that you will receive back a sum equivalent to the VAT on the property at the rate of 19.6 % on new build property (renovated or refurbished properties do not normally qualify for a 19.6% VAT rebate but some still do have a VAT rebate element). This normally takes up to 4-6 months to come through, but some developers will advance the VAT for the government and reclaim it back directly.
One final point is that leaseback is not timeshare. Whilst owners are leasing back their property and may only have use of it at specified times of the year, the owner is the Freeholder of the property at all times.
