Join our newsletter that highlights new properties for sale in France…
Enter your e-mail address:
Lease back, often referred to as leaseback properties are a safe way to invest in property in France. With a minimum of risk, guaranteed rental income and no property management headaches, where else can you find a good investment opportunity that even lets you use the property so many weeks each year?
With prices of leaseback properties starting from around £39,000 and mortgage funding available for up to 80% of the purchase price, this can prove to be an ideal alternative for the UK buy to let investor.
Leaseback property has been around for three decades in France, and was introduced by the French government to increase the quantity of quality of holiday accommodation available in areas capable of attracting more tourists.
With the downturn in pensions and other more traditional methods of investing, more and more people are turning to bricks and mortar, and leaseback schemes have helped take the hassle out of owning a buy to let property in France.
The leaseback scheme enables you to purchase freehold a property which you then earn a guaranteed rental income from. When leaseback schemes are sold, there is a pre-selectionned property management company to whom you "leaseback" your property for a period which usually ranges between 5 and 15 years.
During the period you leaseback your property to the property management company, you have the peace of mind of owning property and benefiting from a guaranteed income, yet none of the hassle related to letting out and maintaining the property! This is one of the reasons why the leaseback scheme is so popular and why there is not enough supply to meet current demand.
You can usually use your property for a certain number of weeks per year for holidays although this differs from scheme to scheme.
The guaranteed rental income tends to range between 2.5% and 6% per annum depending on the property, whether you will be taking your holidays in the property and where the property 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. This is normal when you think about it, as the property management firm cannot guarantee to pay you rental income if you are always in your property!
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. This normally takes some months to come through, but some developers will advance the VAT for the government and reclaim it back directly.
FAQ's on French Leasebacks >>>
French Leaseback in La Gr… The Development Type: From 1-bedroom to 2-bedroom bungalows Property price: From €116,400 to €180,… Prices from: £155,373 View Property Details >
French Leaseback in La Gr… The Development Type: From 1-bedroom to 2-bedroom bungalows Property price: From €116,400 to €180,… Prices from: £104,540 View Property Details >
Paris investment property… Exceptional low risk investment with low entry costs and government backed Leaseback for 11 years an… Prices from: £70,000 View Property Details >
Fantastic low capital exp… Exceptional low risk investment with low entry costs and government backed Leaseback for 11 years an… Prices from: £80,000 View Property Details >
French Alps Leaseback wit… The project site is in an ideal location facing southwest thus getting great light in summer and clo… Prices from: £82,626 View Property Details >
Pur Investment Leaseback … The low deposit, the cultural and economical growth and the attractive yield of 5.25% make the Annec… Prices from: £66,192 View Property Details >
Three-star tourist reside… The Development The sophisticated landscaping and architecture of the development are in perfect … Prices from: £94,698 View Property Details >
Interesting Resale in les… Les arc 1950 offers a 2 bedroom apartment with a balcony toward the water falls. This property is… Prices from: £275,235 View Property Details >
Pure Investment Leaseback… Short Description Pure investment development with high quality services and equipments is for prof… Prices from: £54,317 View Property Details >
More Leaseback Properties >>>