English
FrançaisHi All,
delighted to say I have sold my leaseback, had it for sale on and off for 3 years. Lost out on a couple of sales due to the poor standing of the last management company we had, had to took it off the market when we were in sauvegard. That management company went into liquidation and the management of the apartments was taken on by a new management company.
We made a financial loss on the sale of the apartment but were able to pay off the outstanding mortgage from the sale so thats something.
The stress and hassle of owning the apartment over the last few years has been immense and I am glad that we have sold. I have a sour taste in my mouth from the leaseback scheme and am sorry I ever got involved. Its a pity this forum wasnt around when I bought as I wouldnt have got involved in leaseback.
On a positive note, leasebacks can be resold but it takes a long time, a lot of patience and most likely a big financial loss.
Mags
Well done that is a relief for you.... we are in a similar position as no doubt many others. Did you go through an agency to sell or any advice you can give would be appreciated.
Frank
I went through an agency, the commission for that is high but your leaseback is advertised well rather than trying to sell on your own. I'm sure it is possible to sell yourself but I found that going through an agency was peace of mind as they handled all the queries etc., and were the go between for the notary and the buyer. I would have been worried about being left with tax bill or other if I did it myself.
Congrats. May I ask what agency you used? at what yield did you need to have the apartment at to sell?. Am half way through my mortgage and weighing it up. Have it for sale at 4% yield with sextant but no bite. They tell me I would need to have it at least at a 5% yield to sell.
Thanks for any info,
/Martina
Martina,
I sold with Sextant Properties, the yield was 6%, we were lucky in that the rent had never decreased. The property was on the market for just under 3 years, we had lots of offers over the years but they fell through as the previous management company were showing signs of financial stability. The sale this time from start to finish was about 5mths.
Mags
Our professional buyer actually made an offer for Mags' property. The price was lower but because of our very low commission her return would have been higher by a couple of thousand I think). But our buyer only buys particular types of leasebacks - city leasebacks with good management companies.
I did receive an offer from Seamus professional buyer, although the return would have been approx €4000 extra the sales process would have been an extra 3-4mths.
How long did the process take (from you contacted the agent until you were paid)?
Kevvy,
we accepted an offer on the apartment in January, we received funds from the sale the first week in June. We did have the property for sale on and off for 2-3 years, we had a number of offers on the property but the previous management company were the reason the sales fell through as their track record wasnt great so once the potential sellers looked into this the sales fell through. The first management company went into liquidation last year and a new management company took over in July 2016. I didnt market the property again until I had a rental receipt from the new management company after the first quarter with them as I needed to provide proof that I was receiving rent again etc. I had 3 different offers on the property between November - January from 2 different estate agents and 1 from a private buyer through Seamus.
We were lucky that the apartment was 20mins commute to central Paris so was in a good location, we still made a loss on the property but thankfully we were able to pay back the balance on the mortgage and walk away with some money. Good luck with your sale.
Mags
As I posted on other threads I hthad been watching, we thankfully completed on the sale of our leaseback this week past with the money from the sale showing in our Bank of Ireland account this morning. As with mags we made a loss albeit a small one but we are just glad to have done with leaseback. And like mags the entire process took around five months. We received an off early july and received the funds today. Leasebacks can be sold but sellers need to be realistic regarding the price. Best of luck to those still holding.
What a nice Christmas present - well done - you are one of the lucky ones, to be able to sell
Wine flair thanks but I can't claim any of the credit. That goes to Bertrand and his company C'est la Vie and the Notary he commissioned. Both parties were even considering that it took five months were super efficient keeping us updated each step of the way and always giving prompt replies to emails etc. Thank you again Bertrand. The Notary he used is in Southern France somewhere. We were able to use power of attorney and that saved us having to go to France. Elena (not sure if she was the notary or she was an employee of the notary) was probably the most efficient person we dealt with. Hope all goes with you wine flair. Merry Christmas. I'll keep popping in and out of here to see how everyone is doing.
well done Steve, delighted to hear of another person off loading a leaseback. Anyone else in the process of trying to sell, try stay positive, it may take a while but if you have a leaseback in a good location and are realistic on price (a lot less than what you initially paid seems to be the the norm), you will sell it. The relief in no longer owning , I cant even put into words. to be honest I feel like the time we owned it we were paying someone (as we were always having to top up the rent, and there were lots of times we had no rent) to cause us anxiety, worry and lots of sleepless nights.
Thanks mags. Yes I agree with all your comments. Having gotten to where we are now I feel for the first time in a long time we can at last get on with the rest of our lives. Foreign property investment for us is over. And it cleans everything up for those coming after us. They don't have the headache of trying to get a sale. Unfortunately the likes of you and I are in an extremely small club. We leave behind countless others not so fortunate. Be well. Everyone else please keep us informed. Merry Christmas everyone.
I should also say that the euro against the pound rate is pretty good. We got an exchange rate of 88p. Last year we would not have done so good. I think from memory it was around 70 something then.