English
FrançaisHave just paid deposit on 3 bed in Phase 2 of this development beside Lake Lacanau - price E287,316 (incl. VAT). Marketed by Springvale Overseas Properties, based in Ranelagh, who informed us that there would be no difficulty breaking the Lease after the initial 9 yr period or earlier if we wish, although a portion of the VAT would be repayable. Having read some of the comments on your website I am a little concerned that the Management Co may resist this and appear to be in a stronger position with regard to French law - how can I get some comfort around this before I sign the contract?
Hi.
Is the developement Located in Talaris Marina Lacanau,
Regards
hi gd/Seamus
Yes thats the development - I've since rec'd conracts & note the "promise" re renewal of the lease after 9 yrs - will probably back out with this condition.
Mooney j
Back out.
A commercial lease is a legal contract between 2 parties for 9 years in your case and the other party (the tenant / leaseback-operator) has right to automatic renewal of lease for a new term after initial 9 years. Assuming the operator has a well run business (which is quite rare in leaseback resorts) they will do their financial planning based on rental income they can generate from your apartment for at least 9 years and probably 20. In a commercial lease you can only cancel if there is a serious breach of lease conditions by tenant and even then it involves forcing tenant to liquidate with your property in limbo for a few years.
So in short you are definately locked into lease for 9 years. You dont have to renew for 2nd period but tenant would likely look for hefty compensation and in practice you will be forced to compensate tenant if you dont renew for 2nd period. In some cases the tenant/leaseback-operator may look for compensation from you of 3 years of rental income if you do not renew for 2nd lease term as they can argue it is damaging their business and compensation awarded to tenant/leaseback operator in many cases. If you did exit after the 9 years you could make use of newer looser setup where you sign yearly contracts with someone to provide same services as keaseback-opertator up to end of 20 years to avoid TVA payback prorata.
However you havent bought yet. If you are fully sure you are lilely to get full rent paid for 20 years and you have no problem being in a lease for 20 years then buy. But if not then cancel purchase.
If you have any sense - walk away - hundreds if not thousands of dissatisfied customers wish they had never heard of "leaseback"
Unless I'm missing something, isn't the original post from 2006?
Lol! I wonder what happened?
Hopefully they never purchased otherwise its another lamb to the slaughter
I replied to this as it appeared on the top of the list. I didn't even check the posting date, my apologies.