English
FrançaisI have recently purchased a property that is currently on leaseback and the first 9 years is due to expire in September this year. I do not plan to sign another leaseback contract but wish to use myself and also rent privately. In this situation, who has to pay (if anyone) the TVA - the seller, the b uyer or a bit of both?
Thanks
Andy
Hi - thanks for your answer. As we bought after nine years, do you mean we have to pay back 11/20 of the TVA or 100%
Andy,
you would pay back 11/20 th of the TVA
It is calculated pro rata
You might also have to pay compensation to the management company for not continuing the lease
Yes I was going to ask if you had any trouble with not renewing the
lease. It seems the company can force it to be renewed.
Here is an article from a lawyer about done of the problems.
http://www.diarmaidcondon.com/beware-of-pitfalls-with-french -
leaseback/
Thanks all for your help. The current management company are Pierre Vacance so I'm hoping there won't be a problem with not renewing the lease.
I'm with P&V also, from what I can make out (they are being very
evasive) you will have two options
1 renew the lease in their terms and pay 15,000 to 20,000 euros
refurbishment costs
2 refuse to renew and be liable to pay them compensation. The
amount will be roughly 2 years rental income.
It seems that there will ne no way to take possession without paying a
five figure sum. Of course on top of that you'll have to pay back half
the VAT saving you made in the first place.
You can see why people are starting to realise that this was all a big
con.