» French leaseback

Four days in the Languedoc-Roussillon by Jim Beattie

Aurelie — Tue, 10 Aug 2010 10:36:36 +0000

Our weekend started early, on Thursday in fact, with a morning flight from London to the compact airport in Beziers. We left the English capital under rain and arrived, as we had so fervently hoped, under a haze of glorious sunshine. There was no time to enjoy it yet though, as we had a busy schedule ahead of us.
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Our first stop was to the site of the future tourist residence in Juvignac- set in 445 acres of land it will offer furnished apartments and a swimming pool, close to Fontcaude golf course (ref 30871). Speaking of golf, we moved on to the leaseback development Domaine du Golf Fabregues (ref 14161), where we stayed the night. The residence offers a range of facilities, including of course the golf course (excellent for a novice like me as it is only 6 holes) and a pool, but it also includes a spa and a restaurant, perfect for a relaxing mini-break. Before our evening meal we met a new partner of Sextant’s, who showed us the location of a new leaseback project near Beziers.
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Our stomachs rumbling, we proceeded into Beziers itself in search of our evening meal. Strolling along the beach we found the answer to our prayers- a paillotte, or beach hut. These delightful structures pop up over the summer and serve the freshest seafood around, then like some fragile flower, they vanish for the winter only to reappear again the following year. I feasted on fresh prawns and bourride, the popular fish stew with chilli and garlic mayonnaise. Rosé was on tap to wash it all down, as the sun set, framing the local fairground in the background, a sort of Mediterranean Coney Island.
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Friday was another sunny day. We decided to breakfast in Montpellier, the capital of the Languedoc-Roussillon. It is a vibrant city with a beautiful old town, bursting with history. The architecture especially is interesting, and a real mix, including an 18^th century water tower, an aqueduct, the medieval Ancient Courrier and a host of delightful narrow streets. It’s also mainly pedestrian, making strolling along even more pleasant. Bakeries and cafes are a dime a dozen here, with enticing smells of freshly ground coffee and croissants wafting through the air. In the afternoon, we drove to a superb development near Carcassonne, a magnificent vineyard and spa estate (ref 24659). The collection of intimate houses, stylishly decorated and furnished to the highest standards really compliments the use of local materials (flagstones, wrought iron and stone). The reception house in particular took our breath away, with its beautiful Spa, Hammam and pool, the chic bar and restaurant and panoramic views from the terraces. Carrying on with the luxury feel, we headed to the La Redorte chateau (ref 26624), currently languishing in faded grandeur but soon to be rehabilitated into a stunning development of apartments and villas. Recalling its glorious wine producing past, the red liquid will flow once again, with 12 bottles of wine a year to be offered to each owner! We even visited the secret tunnel where the process will begin anew. Following this visit we felt a little parched ourselves and decided we wanted to experience wine tasting too. We found a charming local producer and a wizened old lady with a sale’s technique to beat any property mogul had me surrendering my hard-earned cash in exchange for a few bottles.
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Dinner was a glorious affair in the attractive town of Pezenas. I supped on breast of duck in a succulent fig sauce, one of the best meals I’d had in a long while. We chose to visit the place properly the following day, and returned, tired but satisfied, to our living quarters in Herepian. The former convent here has been delightfully renovated now offering six contemporary yet classic suites. Needless to say, we slept well.
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On our final day, we woke early to properly explore Pezenas. Its Saturday market seemed to attract the whole region, and for good reason. The array of mouth-watering produce on offer was staggering- cheeses, sausages, fresh fish, fruit (watermelon, cherries, apricots, nectarines…) and vegetables (the asparagus is renowned). Quaint squares are to be seen at every turn, with cafes and restaurants each more appealing than the next. The birth place of Moliere (France’s answer to Shakespeare), the playwright is celebrated in many ways, notably in street and cafe names and every summer impromptu plays are staged in courtyards for the delight of locals and tourists alike. We took the opportunity to view a development near Pezenas, which offers furnished luxury apartments in restored 19^th century buildings. At its heart lies a swimming pool and spa with a tiled Mediterranean courtyard, with full guest services and conference rooms, ideal for investors (ref 24697).
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Along from Pezenas lies Marseillan, a picturesque fishing port by the lagoon. Here the Port Rive Gauche development is entirely sold out- a charming rustic decor and uninterrupted sea views made sure of that.
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We managed to pack a lot into our morning, and after a lovely lunch on the promontory with views over the bay and the beach, we drove to Sete, known as the Venice of Languedoc. We took in a hotel residence right by the sea (ref 29546), and slightly further out a modern residence set in the hills with a pool and landscaped gardens (ref 14243). La Grande Motte, a seaside resort 45 minutes east of here offers a leaseback development nestled in a large landscaped park with swimming pools and leisure facilities, ideal for investment as the resort is very popular among the French (ref 30108).
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Finally, for a bit of relaxation, we headed 15 minutes east to Aigues Mortes. This beautiful fortified medieval town is set between the sea and lagoons, making for spectacular scenery. The development in the Aigues Mortes marina doesn’t disappoint (ref 27053), with small but perfectly formed Mediterranean houses, reminiscent of fishermen’s dwellings, some with their own moorings. Inside the town walls, the plethora of cafes, boutiques and restaurants see life go by at a slow, relaxed pace. It really is the perfect place to unwind. We enjoyed a leisurely meal of pizza with an ice cold beer, a lovely end to our trip.
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On Sunday morning we flew back from Montpellier airport. Our flight was at 10 am and we were back on British soil by 1pm, so quickly it felt like we’d never left…
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If you’re still unsure where to buy in the Languedoc, and weighing up the pros and cons of Sete, Marseillans, Aigues Mortes or any other town, don’t hesitate to get in touch.
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Jim Beattie
Direct line: 020 7428 4915
jim@sextantproperties.com
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Which French Leaseback should I choose?

Rachel — Fri, 09 Jul 2010 10:00:00 +0000

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Nowadays, if you want to finance your French leaseback property, it is better to select one which has a yield lower than 5%; otherwise, banks might decline your mortgage because they will be afraid that the management company of your leaseback will not fulfil all the financial requirements.
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However, buying conditions in France are currently excellent. The exchange rate is extremely favorable since Sterling reached a 19-month high against the euro at the end of June reaching €1.203. If you’re thinking about purchasing a leaseback property, you might be interested in one of our new programs in Argeles Sur Mer, a traditional small village located in the south of France on the Mediterranean coast, at the foot of the Pyrenees Mountains and the Spanish border. With its 7km of sandy beaches, long flower-bedecked and landscaped seaside promenade, Argeles draws in the crowds every year. Les Demeures de la Massane is a new residence offering apartments and villas with terraces and/or gardens. Purely Mediterranean in style, its architecture is a harmonious blend of wood, light coloured stone and ochre shades. The communal area comprises an aquatic centre with a swimming pool and a paddling pool, a spa with sauna, gym and a Jacuzzi, a games area for children and a bowling pitch.
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If you purchase a 1 bedroom apartment for 120k€ HT in this residence, you will receive an annual rental income of €4,560 HT with a yield of 3.80%. The rent will be paid by the management company, regardless of the actual occupancy of the premises.
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In order to obtain a mortgage for this leaseback, you can ask for an interest only mortgage with 100% LTV (Loan to Value Ratio). Accordingly, it will cover 100% of the purchase price of your property excluding VAT (the VAT is financed by the developer) but you will need to secure 30% of the total amount on a side investment such as on a life insurance contract or a bond. It is important to know that when you purchase a leaseback, you will need to fulfil financial obligations. Indeed there may be some shortfalls that mean that the capital required to fulfil these obligations may exceed the available capital. But there is no need to worry; with this kind of investment you are more likely to have a low shortfall.
If you want more information regarding investments options on this leaseback, we can send you a detailed leaseback simulation.
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In addition, as the rental income of your new property will be revised every three years in line with the reference rental index, there will be a clear capital appreciation after a few years. The rise in the value of your asset is also an important part of your investment.
To sum up, there are four major points that will allow you to develop the value of your asset:
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- The capital appreciation. This is part of the return on investment and must be considered as an investment goal from the beginning of the project. The property value of your investment will increase through the years due to price inflation.
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- The side investment interests. By securing 30% of the total amount required, you will not just be making a classic deposit as this side investment will add revenues to your asset, by generating interests. For example, with a secured amount of 36k€ HT on a life insurance contract for a purchase of 120k€ HT, you are able to obtain a yield of 4%. It will be a considerable capital received just from the interests of this side investment.
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- The rental appreciation. It should definitely be considered as the main part of the leaseback investment. Revised every three years, your rental income is likely to increase from a minimum of 1.5% to 2% maximum per annum. Consequently, shortfalls will certainly decrease every three years.
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- The diversification of your investments. These leaseback mortgages are a good way to generate additional revenues and are more rewarding years later if you are able to purchase another one in a different location. These assets will be a major security for your golden years.
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So if you are interested, do not hesitate to get professional advice, for example from Sextant Mortgages in order to receive simulations for leaseback mortgages.

Leaseback Resales: Why are they attractive investments?

Rachel — Tue, 06 Jul 2010 16:06:50 +0000

There are a number of reasons for buyers to invest in France through leaseback property resales as opposed to buying off-plan. Before we list those reasons, we shall remind you what a leaseback is.

Buying under the French leaseback scheme is like obtaining a discounted purchase price, with the VAT element ( 19.6% of the price ) which is advanced by the State. On completion of the purchase ( e.g. signing of the acte de vente) you are required to enter into a formal lease with the management company who will then rent the property out on short-term holiday lets. The leaseback contract covers a nine year period. Where the intention is to occupy a property for only a limited time each year, or even not at all, leaseback ownership can offer a regular rental income, without the burden of having to market the property personally, or employ local agents to do this. While such schemes normally offer a regular rental stream, it is commonly the case that the amount of the rent is lower than may be obtained for a similar property if sold directly, although this is probably the counterbalance for not having the burden of marketing the property, cleaning it, managing guests and so on.

So, here are the reasons why they are attractive investments:

- In hard times as we have recently seen and that some are still facing, there are great opportunities arising from the property market. For those who purchased a few years ago and need to sell quickly for whatever reason, some are happy to sell below the current market price for new build or close to the price they originally paid, so it is extremely favourable to buyers.

- From an attractive purchase price, you can benefit from a more competitive rental return. If you compare with what a new leaseback can offer, you could be better off with a resale in terms of profit margins.

- You will still benefit from the VAT advantage as you will ‘inherit’ the VAT benefit from the existing owner with no procedure involved as long as you accept that you will continue with the existing lease in place

- You get the same LMNP or leaseback tax incentive as if purchasing new, meaning that you can deduct your Notaire fees, mortgage interest, etc…from the rental income received to avoid paying taxes on rental income. And finally you can view the apartment you are purchasing, there is no off-plan mystery…which appeals to many investors who want to avoid any unpleasant surprises.

Virginie Hopps-Delplace | Specialist French Property Lawyer
for and on behalf of Charles Russell LLP

5 Fleet Place, London EC4M 7RD
(T) +44 (0)20 7203 5313
(F) +44 (0)20 3023 8024

French Rural Property Index updated!

Matthieu Cany — Wed, 19 May 2010 12:51:24 +0000

Sextant French Properties helps people to find their dream house in France, whether it be a holiday home or a permanent residence. In order to guide their customers during their search they created the French Rural Property Index which is updated regularly.

A few months ago, Sextant French Properties created its own property index, the “French Rural Property Index”. Its primary function is to aid potential investors from the UK in understanding in much greater depth, the French rural property market. It demonstrates to potential consumers the trends and predictions for each specific region of France.

The Rural Property Index takes into account the 10,000 properties advertised on the Sextant website; most of them, around 97%, are old properties or “re-sale”, that is to say properties which have been on the market before and is either habitable, ready to move in or full renovation. The remaining 3% involve new-build and investment properties.

The index has now been updated and shows an evolution over 7 months, from October 2009 to May 2010. The French Property Index enables a graphical view of the average price trends in France which clearly shows that the housing market is slowly recovering. Since prices have been increasing steadily every month, we can predict that it will be the major trend for the coming months: now would then be the right time to buy.

The Index also provides regional trends, showing average prices and evolution rates for the 12 most popular French regions, excluding the Paris and Alps regions. The reason is that these two areas experience irregular prices due to the very high demand and their peculiar situation (Paris being the capital and the Alps offering luxury ski resorts) that would skew the figures for France. For example, the average property price in Languedoc increased by 3% compared with October 2009 to reach €338,715 in May 2010.

Although the vast majority of properties in Provence Cote d’Azur is not rural, many British investors find the area a very attractive place to either have a holiday home or a more permanent domicile. As a consequence, Sextant, in accordance with its aim to help find the perfect French home for British people, decided to include these properties in the Index. The prices in this region average €754,870 and experienced a 20.4% increase compared with October 2009.

Click here to view the latest figures: http://blog.sextantproperties.com/french-rural-property-index

Matthieu Cany
Managing Director of Sextant French Property
Tel: 020 7428 4910
www.sextantproperties.com

Three days on the Cote d’Azur by Jim Beattie

Matthieu Cany — Wed, 12 May 2010 10:24:17 +0000

The prospect of a long week-end on the French Riviera can only enchant. I was however, left worrying that a certain Icelandic volcano might spoil the party. Luckily the skies were clear and a short flight later, we were greeted with the breath taking view of Nice- the low Alpine mountains, the sea and the town itself nestled neatly in between. After a hassle-free car hire we set off to our first destination: the glamorous St Tropez, via the new motorway. We seemed to have coincided with the Harley Davidson Euro Festival 2010 which takes places in the Saint Tropez bay, meaning we were rubbing shoulders with (and overtaken by) roaring motorbikes along the way.

Once in St Tropez, we decided to sample the local seafood and watch the afternoon promenaders, which lead us to the marina. We were not disappointed, washing down seafood pizza with a dry and fruity rosé. Now that our stomachs were full we headed along the coast, meandering around Port Grimaud and Sainte Maxime. The former is known as a private lagoon pleasure city, full of waterways, yachts and houses in tasteful Provencal style. The brainchild of an Alsatian architect who wanted to recreate the feel of Venice, the town only arose from the sand dunes in the 1960s. Owners here are more than a little wealthy, and include Joan Collins. Sainte Maxime, often called St Tropez’s poor and less fashionable neighbour, was a pleasant surprise. The shaded streets were well worth a visit, including the 18th century church, colourful facades, cobbled alleyways and numerous squares with fountains.

We bought some souvenirs of course. I was told that in the area one is never more than 20 minutes away from a golf course! This is just as well, as it is such a popular sport and I for one wouldn’t want too many eyes watching as I retrieved my ball from yet another bunker.

It was getting late by then, and we decided to head back to our hotel in Nice, via the Esterel Massif, a coastal, rocky mountain range. It was however, too dark to see much by this point and we decided to explore further the following day.

The second day saw us visiting some new build developments. In Antibes we checked out the Perle de Jade Residence and The Antibes-les-Pins Residence which has been completed and boasts contemporary design and stunning sea views. In Nice we saw the Jardin Pastorelli Development of apartments and townhouses, which is situated at the heart of Nice old town yet still feels remarkably tranquil once inside. On the way to St Raphael we decided to take a better look at the Esterel, marvelling again at its wild, untouched beauty, with rugged red cliffs jutting into the sea and lush greenery.

On Saturday morning we decided to get up early and make the most of the covered Marché Provencal in Antibes. Here one finds the freshest produce you’ve ever seen, prawns, langoustines, crab, tomatoes, peppers (both far redder than the pale sorts one finds in supermarkets here), courgettes (bigger than any I’ve ever seen), lemons, salads, fresh herbs and spices in yellow sacks, and olives, stuffed with all sorts of heady ingredients- garlic, nuts, peppers, anchovies or marinated in thyme and lavender. We even spotted a celebrity, the Welsh footballer Robbie Savage, browsing the stalls with his wife.

As we were in Antibes, we decided to visit the Picasso museum in the Grimaldi Palace where we saw the resplendent “Joie de Vivre”, celebrating happiness regained (post World War Two), and the radiant Mediterranean light.

Continuing the arty theme, we then headed to Vallauris, west of Antibes, where Picasso lived for seven years. He practically single-handedly brought about the renaissance of the Vallauris pottery industry and his presence is felt and evoked continuously (he was allowed to decorate the chapel in town and created a bronze statue for the local children to climb on in Place de la Liberation).

Biot was the next destination on our map, a former pottery centre but now renowned for its glassblowers and bubble glass products. The glass factory is open year round to the public who wish to see the craftsmen create their masterpieces. Following on in the arts and crafts vein we ventured 25 minutes up the road to Grasse, the world capital of perfume. There are plenty of old perfumeries one can visit though we didn’t have the time. Still, you can wonder and wander to your heart’s content in between the 17 and 18th century buildings, under arched tunnels, up and down ancient steps and then unexpectedly come upon a square with a three-tiered fountain, a Cathedral or a watchtower.

On the way back from Grasse we decided to stop in Valbonne, a picturesque town which retains a familial, village atmosphere. We sat in a square and sipped a hot chocolate-coffee drink in a picturesque cafe, utterly delicious, as we watched the world go by again- children playing, parents sipping wine and watching, tourists like us basking in the last rays of the day.

Our final meal of the trip took place in Antibes, and we feasted on Aioli Provencal- vegetables (carrots, potatoes, green beans) with fish served with the aioli sauce, heaven for garlic lovers like us, but not quite as enjoyable for anyone stepping within a few feet of us. We then ambled along into Juan les Pins, which really comes alive when the sun goes down, with its giddy mix of casinos, clubs, live music and late night shopping. Watching the beautiful people drift past as we sipped a beer, it was hard to imagine that within 24 hours we would be back in less Mediterranean climes, contemplating another week in the rat race.

In three days, we saw plenty, and yet only briefly. What struck me above all were simply the colours- the blueness of the sea (it isn’t called the Cote d’Azur for nothing), the arresting old town of Antibes with yellows, reds, greens; quaint yet not overly so. And then there is the culture- for all the sunbathing, jet setting crowds, the Cote d’Azur is also a place of overwhelming creativity and artistry, from perfumery to glassware, Picasso to pottery, it is truly a feast for the senses.

If you’re still unsure where to buy on the Cote d’Azur, and weighing up the pros and cons of Nice, Antibes, Cannes or any other town, don’t hesitate to get in touch.

Jim Beattie
Direct line: 020 7428 4915
jim@sextantproperties.com

Only one unit left in this leaseback next to Paris

Matthieu Cany — Mon, 22 Mar 2010 14:46:40 +0000

The Domaine of the Val de Seine – Only one unit left!

Act fast to snap up this last available unit in a luxury business development just outside of Paris!
This 4-star leaseback business residency offers spacious accommodation which is ideally located at the gateway of Paris, in Sainte Assise Beaulieu. The development offers fully furnished studios to 2-bedroom cottages offering 20 sqm to 43 sqm of living space.

The accommodation features:
A fully fitted kitchen and bathroom, television and a telephone socket, storage space, electric heating and double glazed windows

The residency offers:
A car park area, an indoor heated swimming pool, 8 tennis courts, a SPA and fitness centre, a restaurant and bar, and a conference centre

The investment scheme includes:
- A high rental demand
- An 11 year lease term
- Up to a 5.2 % yield
- A 19.6 % VAT return
- A guaranteed index-linked rental income
- A self-occupancy scheme

The residency is ideally located just 35 minutes from Orly airport and 45 minutes from the Paris Euro star. Located in a green area, facing the magnificent panorama of the Seine, this development provides all the necessary facilities for tourism and business and also offers relaxation for quality stays.

New in Languedoc: Beautiful house with leaseback opportunity

Matthieu Cany — Wed, 17 Feb 2010 17:57:41 +0000

Looking to invest in an expanding housing market? Look no further than the new estate at Saint Benoit in the Languedoc-Roussillon region of southern France. These new houses give the perfect opportunity to enjoy a holiday and rake in profits at the same time!

A vineyard and Spa estate, Saint Benoit offers both the ancient and the contemporary in its modern styled furnished apartments, with private gardens, set within the estate’s 12th century renovated gardens. Set in the heart of all this modernity is the estate’s reception centre which incorporates:

-   Restaurant/bar
-   Lounges and libraries.
-   Spa facilities with indoor and outdoor swimming pools, saunas and Jacuzzis.
-   Kids’ area.

These delightful apartments are €245,180 with a required deposit of 2% on agreement.

At Sextant French Properties, we can offer you a top quality mortgage service whether it be an interest-only mortgage, a traditional repayment mortgage or even a hybrid mortgage should you so require.

The property will be under the watchful eye of a management specialist with rents guaranteed on a 9-year renewable commercial lease and paid on a quarterly basis. The buyer receives 19.6% VAT cash back and the property can be offered on 5 different options from a pure investment (yields can be up to 4.5% per annum) or a 6-month personal use scheme that sees nil return on the investment but you can nonetheless enjoy the property all by yourself!

There are only a few units left in the estate so hurry now and make good on a great opportunity!

The New Face of Prestige in Biarritz

Matthieu Cany — Tue, 26 Jan 2010 11:23:29 +0000

At last, the most talked about luxury apartments on the Atlantic coast are here! These prestigious apartments represent the epitome of class ensconced in the brilliance of Biarritz and symbolise a premier investment in one of the hottest property areas anywhere in France! The apartments incorporate both the breath-taking, man-made architecture and the paradisiacal beaches and landscapes that benefit such luxurious surroundings.

1.   400 metres from the entrance to the best casinos.
2.   Exclusive “club” feel atmosphere.
3.   Swimming, spas, whirlpools, steam rooms and saunas.
4.   Chilled out garden, exclusive to the apartment complex.
5.   A range of top quality restaurants and shops at your immediate disposal.

Above are just some of the reasons why you SHOULD NOT DELAY in your decision to INVEST!

The management company has 3 magnificent packages which YOU can benefit from, putting both your money and your property to the best possible use.

1.   Invest Excellence: Renting the apartment all year round guarantees YOU a 4% yield on your investment over the year and getting the most out of your money in the quickest possible time!
2.   Serene Leisure: Sees the management company paying YOU rental incomes depending on when you want to use it!
3.   Optimum Leisure: Use the apartment 6 months of the year for your own personal use!

Hurry now, 24 of 57 of these fantastic apartments have already been taken within the last week! Don’t Miss Out!

Here is the description of this Leaseback in Biarritz

Free Alpine Property Leaseback Seminar on 19th January 2010

Matthieu Cany — Tue, 12 Jan 2010 23:37:40 +0000

Registration is now open for Sextant Property’s latest free property seminar on 19th January 2010

This free property leaseback seminar is designed to inform you as to how to choose potential properties and how to get good returns on capital invested. These investments can provide you with a palpable source of income as a holiday home. Additionally, you will be shown the advantages of a buying off-plan and how to avoid the currency fluctuations.

The seminar’s case-study will be luxury apartments in the ski resort of Avoriaz, the gem in the crown of the Portes-du-Soleil ski region in the French Alps. At an altitude of 1800m and over 650km of ski slopes, these luxurious apartments are much sought after. The resort is situated in the mountains overlooking the Morzine valley and is approximately 1 hour by car from Geneva airport in Switzerland.

As well as the obvious delights for both skiers and snowboarders alike, the resort houses a 2500sqm indoor water-park – dubbed “Aquariaz” – a perfect place for both old and young!

The resort is a car-free zone which ultimately makes it a safer environment for young families.

The guest speaker will be Jim Beattie who will speak about the apartments themselves and why property investors should be looking to purchase in this highly desirable alpine area of France.

This seminar is free but places are limited so book now to avoid disappointment.

Date: Thursday 19th January 2010

Price: FREE

Breaking News – St Palais sur Mer leaseback

Matthieu Cany — Tue, 18 Aug 2009 14:25:08 +0000

We received a notice from our leaseback developer in St Palais sur Mer (property ref 15998). As they have sold most of the development within the last few months and because of unexpected construction costs, they decided to increase the prices by 4% on the 18 remaining apartments (out of 71). Thus the rental yield decrease from 4.8% to 4.6%.

Most foreigners will think that it is mad to increase the prices in this difficult time. In fact it the state of the economy is not the same in all the european countries. The French investor market has been very active since the introduction of a new law (Loi Scellier) and French people have been buying massively in order to benefit from this tax incentive (you can also enjoy it if you have a French income and pay taxes on it).

This news illustrate the current market in France and clearly show that the New build market is picking up again so it is the right time to invest in France.