Leasebacks

Leasebacks have just got better with some important French TAX changes – more of that later. With a French Leaseback, you buy a property – typically in a ski, beach or golf development – and receive back the local tax (TVA). TVA is levied at 19.6% in France. As well as this substantial perk, you received a guaranteed rental income for initially 9 to 11 years.

How much does the Property Price appreciate?

Here are some examples provided by the biggest leaseback developer in France:

1 bedroom Meribel apartment bought in 2003, appreciated in value 118.3% when sold in 2006.

1 bedroom Coudalere apartment bought in 2004, appreciated in value 97.4% when sold in 2006.

Of course, we cannot guarantee such high levels of growth on future purchases

SIPPS

Another big tax perk for UK buyers is the benefit of buying a leaseback within your SIPP. Many of our developments are classed as “commercial” and can be included. We have leasebacks in France and Spain that can be included in SIPPs.TAX BENEFIT
There has been recent clarification of a new French law regarding VAT and leasebacks. Upon the sale of a leaseback property, owners now no longer have to repay the VAT pro rate temporis as long as the new buyer continues with the lease agreement – the new buyer does not therefore have VAT to pay either.

OUR TOP TIP

CENTER PARCS

Lac de l’Ailette, the first Center Parcs Europe Domain developed by the Pierre & Vacances Group, opens in July 2007.

The new generation Center Parcs is in a league of its own – with high quality furnishing, LCD screens, private terraces and three different types of Cottages.

We expect reservations to be snapped up fast – please contact us if you wish to reserve.

Sebastian Jay
PropertyMagnate.com – Leaseback Investments
tel: + 44 (0)1525 635191

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