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This three star residence will comprise a larger building consisting of 57 apartments and 12 small villa type buildings each consisting of 6 apartments. The accommodation ranges from studio apartments of 23 m2 to 2 bed units of up to 74 m2. The properties stand in their own large and private grounds with its own secured entrance.
Given the location in the south of France the properties are very well priced in our opinion ranging from 80,000 euros to 206,000 euros. The yield is also very impressive, at 5% based on no personal occupancy to 3.5% which allows for 8 weeks free usage. A brochure is available on request.
What is Leaseback?
• Guaranteed index linked income
• Refund of VAT currently 19.6%
• Established developer
• Fully furnished
The Leaseback scheme was established in France in 1976. It is open to non-residents and is becoming increasingly popular in the UK as either a pure investment with a guaranteed income, as a holiday home option, or both.
The scheme works by purchasing a freehold property which is then leased back to the developer or a management company. Under the leaseback scheme the French government refunds the VAT of the property (currently 19.6%).
The purchaser can also enjoy periods of usage through the year, depending upon the terms of the lease. The developer or management company is responsible for all the maintenance of the property including the maintenance of furnishings which are typically included in the purchase price. The developer is responsible for insuring the building and contents. It also pays for many of the local taxes and all the utility costs.
The owner is then guaranteed a rental income. The net return is index linked annually to construction costs. Tax allowances apply in respect of interest payments, legal expenses etc. If the property is held for 15 years there is no French Capital Gains Tax.
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