Leaseback properties in France. Private individuals agreed to a leaseback scheme in France (buying and renting to an operating company)

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Welcome To French Lease-back
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The owner of a French leaseback wants to sale his
property What is the process for a French
Lease-back Resale ?
Two options
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Selling with the commercial lease
Selling without French Lease-back Resale
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SELLING WITH THE COMMERCIAL LEASE
Selling with the lease-back property in France
with the commercial lease means the price depends
from the rent. The second market for French
lease-back is based on the return in of the
price that the yearly rent guarantees to the
buyer. The market is usually between 3,5 and 5
of the yearly rent. Location comes only second
and size of the real estate third. The buyer will
only check the yearly return (Yield) and the
yearly costs. The seller has also to provide the
buyer with all the information regarding the
timely payment of the rent by the operating
company (lessee).
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SELLING WITHOUT FRENCH LEASE-BACK RESALE
If you can resale the French leaseback real
estate without a lease, the price will be around
the usual market value in this town or city. The
only trouble is to get rid of the lease. Two
options again. First, the court has cancelled the
lease, because of unpaid rent for instance. The
second option you terminate the commercial lease
with the tenant. However, it comes with damages
if the lessee is terminating the lease.
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You can negotiate through your lawyer with the
operator (lessee/tenant). Usually, the owner and
the operating company signed a settlement during
the expertal proceedings. A judge appoints a
judicial expert (working for the court but paid
by the parties). The expert studies the lease and
the accounting of the lessee operating the hotel
(residence of tourism). The expert chose next
one or several methods to calculate damages,
called indemnité déviction (eviction
damages). Next page has example..
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The lessor (owner) has two one bedroom in the
French leaseback property. He wants his two
apartments back and terminate the lease. He gives
notice (congé) within the notice period stated in
the contract. In this case, the courts expert
chose to calculate the eviction indemnity using
the margin calculation method. The commercial
lease covers two one bedroom. The operator
subleases to tourist and provides services to the
final customer (like hotel services). The
operating company manages a lot of apartment in
this building. The question is will the this
French lease-back resale hurt his business ? The
operator will continue to able to run his
business of subleasing and offering various
services to tourists. Damages should not take
into account a global loss, but only the lost
income of the two one bedrooms.
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It would be for the tenant company only a partial
loss regarding all the apartments she manages in
the French leaseback building. The eviction
indemnity must be calculated according to the
method of calculating the margin, according to
the expert appointed by the court. The gross
margin amounts is 380,375 euros. Considering the
expenses for the operating company (reception,
security and cleaning ), the coefficient applied
to the gross margin is 4, which gives an eviction
compensation of 1,521,500. It is not disputed
that the share repaid to the lessor in relation
to all the rents paid out is 1.40 so that the
eviction indemnity(damages) should be to EUR
21,301, following the expert. The occupancy
allowance (indemnité doccupation, like a rent
but after the lease is over) must be equal to the
rent paid back to the lessor. According the this
expert.
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It was at April 1, 2009 of 434 euros monthly for
the two studios and the tenant company does not
dispute that this allowance must then be revised
annually in the same way as the rent paid
according to the variation of the index INSEE of
construction on April 1 of each year so that it
was on April 1, 2010 of 429 euros, on April 1,
2011 of 437 euros and on April 1, 2012 of 467
euros, the same variation must then apply
annually until the complete release of the
premises. Please, feel free to ask your question
to our French lawyer specialized in French
lease-back resale Me Bruno Traesch.
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For More Update Visite The Website
https//frenchrealestatelaw-traesch.fr/leaseback-i
ndemnite-eviction
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THE END