What is Leaseback?

A popular way to invest in property in France is to buy a leaseback property which benefits from a government-backed VAT-refund incentive, designed to encourage investment in tourist residences. Through freehold ownership of an apartment or cottage that is leased back to a management company for a minimum period of 9 years, investors benefit from guaranteed annual returns from their fully managed and maintained property with relatively low up-front costs and no ongoing maintenance or running charges.

Main features of a leaseback property with Us:

• A freehold, fully furnished property
• Investor entitled to benefit from the 11-19.6% VAT rebate
• Property leased to P&V management/tourist company for minimum 9-year period, with automatic renewal for a further 9 years
• Investors receive index-linked, guaranteed annual return of up to 4.5% with options for personal usage
• No running charges or maintenance costs

What does leaseback mean?

Investors buy the freehold of a property outright but lease it back to a management company who specialise in the tourist management, maintenance and rental of these properties for a minimum 9-year period. In return owners receive a guaranteed annual return, irrespective of occupancy of the property, NET of all communal charges, maintenance and running costs.