Leaseback properties are often found in a “Résidence de Tourisme” in popular tourist locations, on the coast, in the mountains or in cities such as Paris. The French government introduced the scheme to improve the quality and quantity of holiday accommodation, but this is now extended to student accommodation and residence for elderly people.

A leaseback property may be a townhouse, an apartment or a chalet, depending on location and type.

Your leaseback property is a freehold property which you own outright and lease back to a management company, in return for a guaranteed index-linked income during the leaseback period, which is usually 9 years. Depending on the individual scheme you may be able to reserve some free weeks in your own property, or benefit from discounted rental. The management company takes care of finding rentals, looking after your property and the shared facilities (such as a swimming pool) within the Résidence.

New leaseback properties are usually sold “VEFA” or off-plan. Furniture, together with kitchen and bathroom equipment, is included in the price.

For qualifying developments, you are entitled to reclaim the VAT charged on the purchase (currently 19.6% for new-build). Interest on your leaseback Mortgage will only be charged on the amount drawn down, which depends on the completion of the building works.

To find out more, complete the CAFPI online application form and let us, the specialists, do the rest: