Your Guide to French Leaseback Property

21 December 2010

So, you are considering investing in a home in France, and you have heard someone mention the option of French Leaseback Property, but you are not sure what that means?



Leaseback is short for sale-and-leaseback, and it is when a purchaser buys a property outright, and then leases it back to a management company for a long term period. The amount of time is decided on by the negotiating parties, but it can be up to ten years. In return, the owner of the French leaseback property (that is you!) earns an ongoing fixed rental return. The rental income can be used to offset your mortgage payments. The property owner is guaranteed a rental return, regardless of occupancy.



French leaseback property allows you to purchase a property that provides you with personal occupancy yet also benefitting from a guaranteed annual rental income. Many leaseback property contracts allow you to take holidays at your property for no additional charge. You will have first choice on which time of year you would like to stay, and you are expected to let the managing company know at the beginning of each year. It is the ideal choice if you are looking for a property investment opportunity but don't want to have to manage or maintain it yourself. The company to which you lease your property back will be responsible for all maintenance. French Leaseback property schemes have experienced a surge in popularity recently.



When choosing a property, it is very important to look for a location that will have a steady flow of tourism so that you will never struggle to find someone to rent out your property. Choose a location with a warm year round climate, all the basic amenities, and a strong tourist focus. Luckily there are many great locations in France that suit this description!


Article Bio

For more information about French Leaseback Property schemes, contact the friendly staff at Select Resorts.


Written by Natlile Windsor

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