Too good to be true leaseback in France ?

[vesuvius]

Re: CGT + IT

hi paidi

am interested in the french leaseback scenario. could u email me what u have on the inheritance tax issue,please
regards
vesuvius

 

[RMM]

I saw that someone had asked a question on the company Overseasproperties.com a while ago but I did not see a response. Anyone familiar with them? I recently had a discussion with someone who works with them in relation to a leaseback in Sth of France

 

[Red]

Hi

Am v interested in french leaseback schemes. Thinking of releasing equity & remortgaging to raise the initial 20% deposit required & get a french mortgage for balance. 2 questions

1.Can I claim mortgage interest relief here on my new borrowings
2. What are my tax liabilities in Ireland & France- The first few years looks like my french mortgage repayments will be greater than any ental income received.

 

[ClubMan]

1.Can I claim mortgage interest relief here on my new borrowings

Mortgage interest relief is only available on owner occupiers on mortgages used to purchase or improve their PPRs and not on investment mortgages. Perhaps you mean can you write mortgage interest off against rental income?

 

[adj38]

I deal with all the major developers in France and specialise in leaseback properties. As such i am not plugging any particular developer or location. The properties are all over France and are listed on the website at http://www.esprit-consultants.co.uk

The website is full of relevant information and tries to outline frankly the pros and cons. Please contact me through the website and I will be pleased to answer any specific questions.

I hope you find it useful.

 

[Greenhorn]

As we're on the verge of investing in leaseback in Nantes, I came across your site through google search. I'm very scared at the prospect of the property having a poor resale value as indicated here. We can't afford to have our capital depreciate, as we're mid-fifties and very modest income. We were intending to do this with a once-off lump sum. Is there anyone with reliable information on what really happens after the initial lease period, which in this case is 9 years?
Mary

 

[gauloise]

Hello Greenhorn,

I am very invloved in tourism in France and I would say that Nantes is not one of the more visited locations. Is this purely for investment purposes or would you hope to use it personally also. A number of people buy into Leaseback in France with a view to taking up residency there in the future. If this is not your plan, I would recommend looking at other areas in France, particularly along the Mediterranean in the Languedoc Region where planning is tight demand is high. If you want to PM with some info on the developement you are thinking of buying I can certainly get some more inforamtion for you ie current and recent trends etc..

Bonne chance!

 

[adj38]

As we're on the verge of investing in leaseback in Nantes, I came across your site through google search. I'm very scared at the prospect of the property having a poor resale value as indicated here. We can't afford to have our capital depreciate, as we're mid-fifties and very modest income. We were intending to do this with a once-off lump sum. Is there anyone with reliable information on what really happens after the initial lease period, which in this case is 9 years?
Mary

What happens at he end of the lease depends upon the actual contractual terms. Some renew for a further 9/11 years some on a 3 yearly basis, and some not at all.

My own advice would be to assess if the leaseback works well outside the scheme and if so what is the general market like.

In reality to benefit from minimizing CGT and eliminating the VAT you need to keep the property for atleast 15 years.

[broken link removed]

 

[Hawthorn]

I saw that someone had asked a question on the company Overseasproperties.com a while ago but I did not see a response. Anyone familiar with them? I recently had a discussion with someone who works with them in relation to a leaseback in Sth of France

 

[Hawthorn]

Hi RMM
You asked about Overseasproperties.com. I bought a leaseback in South of France a year ago through their Irish agent in Galway. It was a very positive experience and everything went smoothly. They use an English speaking notary and accountants. Everything went smoothly and got VAT rebate 5 months after completing. The only hassle was having to open a French bank account. However I was lucky that I found an English speaking branch so that took the hassle out of it.

 

[icecool]

I have just started to look at leaseback propertry in the sth of France and it all seems to be good to be true
I would be grateful for any views AAM have on this , has there been a previous thread , when I did a search I could not find anything

In my opinion leaseback schemes have evolved in France as a new way to market property and stimulate investment their as like SPain it has slowed down considerably. Unless you want to use the place youself look elsewhere

 

[Keentoinvest]

Re: leaseback

Have you tried to claim their vat back from the french leaseback? Id be interested to know how long it took
It mostly comes down to time spent in the property

 

[smmb]

Only income in Ireland can be offset against rental in Ireland. If you get an equity release on your own house here for eg to fund something other than works to your own house, no tax offset/relief is available.