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French leaseback

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  • 29-05-2015 5:50pm
    #1
    swanvill
    Registered Users Posts: 276 ✭✭


    Hi,

    I have the dubious pleasure of French leaseback that has neither lost or made money for me. I am now coming near to the end of my ten year lease & I have been approached to sell it.

    I am wondering has anyone had any recent experience of selling their leaseback property and how they got on?

    I would be grateful for any advice on costs of sale etc.

    Thanks.


    Swanvill


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    #2
    pedroeibar1
    Closed Accounts Posts: 5,108 ✭✭✭pedroeibar1


    From whom are you getting the valuation? Generally residential prices are down, still falling and in many departements are lower than in 2006. Have you checked similar properties on www.fnaim.fr ? Are you sure the agent is not inflating the value just to get a chance of earning some commission?

    Notaires fees are linked to the age of the property, agents fees also differ, usually the big chains are more expensive than small local guys. How is the property owned – personally or through a SCI? It is far too complex an issue to comment on without much more info being provided by you.

    Taxwise, in general (assuming you are non-resident in France & resident in the EEA) you can offset against gains the costs of purchase / sale plus any expenditure on improvements. CGT is 19% plus 15.5% frais sociaux BUT since the ECJ ruling last March you are now entitled not only to avoid the frais sociaux but you should also reclaim what you have been paying on the rental income since they introduced that charge – there is a limit on the claim-back period, 31 Dec 2015.
    You need a good notaire -


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    #3
    [Deleted User]
    Posts: 0 ✭ [Deleted User]


    The fabled french leaseback! Haven't heard that mentioned in years!

    From I know of most of those deals they flattered to deceive and almost all who bought had a bad experience. So if you can sell it , and collect what you originally payed that would be good enough for me. If someone experienced in selling leasebacks has approached to sell it on a commission basis then why not?


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    #4
    swanvill
    Registered Users Posts: 276 ✭✭swanvill


    Thanks Guys for your advice. An estate agent gave me the price, who I found after getting a mail shot. So naturally suspicious!! I will use the website to get an idea of value. I will seek out other estate agents to get another price. I own it personally & not through an SCI.
    Thanks for the tax advice but on initial value it seems to about break even


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