Leaseback Guide
Once you have decided to purchase a leaseback property, you will need to place an “option” on the property you have chosen. In some cases you will need to act very quickly, particularly if this is a popular development with few units remaining. These can sometimes sell out within a day and although you may feel you are being pressured, it is absolutely necessary to make a quick decision if you don’t want to miss out. But do not worry; you are protected by a seven day “cooling off” period by French law, so you can change your mind. (See below).
To secure the option and reserve the unit, you will then have 48 – 72 hours to lodge a deposit with the development’s notary. The amount requested is usually 5% of the total cost of the property including VAT. We will provide you with all the necessary bank details to transfer the deposit and a copy of transfer will then have to be sent to the developer, whose details you will be given.
The transfer and deposit have been made and you now have a reservation. We will now send you all the contracts and we will provide you with all the assistance you require. The contracts include floor plans, list of furnishings, description of materials, a preliminary reservation contract, a lease agreement and an official fiscal form to obtain the VAT refund.
Once these contracts have been completed they are returned to the developer for signature and you will receive a copy in return, which at this stage will be signed by both parties; the developer and yourself.
From the day you receive the signed copies you have what is known as the seven day “cool-off” period during which you can change your mind. After this period, your reservation will be considered to be “firm and definite”
Leaseback Mortgages
During this period of time you will have made enquiries about obtaining a mortgage. Please don’t hesitate to consult us about mortgages, we have good working relationships with the best French banks offering the lowest rates and this will facilitate the process for you.
When your mortgage is approved you will be able to sign the title deed and become the legal owner of the property. If you do not obtain a mortgage you will receive a full refund of your deposit and the contract will be cancelled.
At this stage, if you have taken out a mortgage in
Signing the title deed: Once you have accepted the mortgage offer the French notary will draw up the title deed. We recommend that you come to
Lastly, your mortgage provider will begin to make the staged payments leading up to the delivery of your property.
Again, we will assist you through the entire process and provide you with the necessary help and advice to make your purchase as simple as possible.
Last amended February 2008.
Premier French Leaseback and Investments