Assetz has introduced a French leaseback product offering new options for overseas property investors.
French leaseback schemes enable investors to purchase a freehold property which they then lease back to a property management company, earning a guaranteed rental income for at least nine years.
In return for signing a long-term rental agreement with the management company, the French government gives the buyer the 19.6% VAT charged on all French property back as a discount.
Under the Assetz scheme, investors would claim back VAT on the property purchase and receive a 5% guaranteed rental yield for five years, with all administration fees, taxes and insurance paid, along with three weeks’ free usage and a 15% discount on the public tariff at other times.
Following this period, the management company would continue to rent the property out for another four years, should the investor wish to do so.
Stuart Law, managing director of Assetz, says: “Although French leaseback remains one of the most popular choices for British investors in France, many are put off by the length of the commitment required and the inflexibility concerning personal use of the property.
“This new scheme offers investors a solution to both these concerns, alongside all the existing benefits of the Leaseback scheme. Investors can use the property as much as they like and sell on after five years free of the leaseback contract, taking the capital profits.”