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FrançaisHi - I am just trying to get my head around the small print before investing in leaseback. I have a small concern regarding what happens at the end of the lease period following something I have read on another site. I know that because you are the freehold owner of the property you may choose to not renew the lease at the end of the initial period, however I have read that with some property management companies this is not possible and they will expect you to renew after the first period. Failure to do so, may result in them wishing to charge you an eviction indemnity as allowed for under French law. Can anyone shed any light on this and how common this is? Are you generally free to sell the property as non-leaseback at the end of the period? Many Thanks
It would seem there is now an example of the amount of compensation being asked for on exiting a lease. See "Exemples de sorties de bail ZRR" on the http://groups.google.com/group/Invest-RT. 30,000 euros!!!
Ann
Seamus, <<Some agents state that companies will provide attestations to say that
they will not do this but these attestations cannot override French law.>>
We have been told by French lawyers that while these attestations do not override the inherent right of a management company to claim compensation, the existence of an attestation would make it highly improbable that if they took their claim to court, the management would succeed in any action.
This is why, in spite of the fact that they would make good marketing tools, the majority of management firms will not give affidavits. They prefer to keep oprn their chances of a succesful action for compensation.
Robt39525.421412037
Also Seamus, the affidavit has to be a seperate document to the lease otherwise it has no validity what so ever.