French Leaseback were unsuccessful over many months in our endeavours to sell our lease-back apartment in La défense, Courbevoie.

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Welcome To
French Leaseback
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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
Selling with the commercial lease
Selling without French Lease-back Resale
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With The 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.
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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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Without The Lease
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.
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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.
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.
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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).
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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.
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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.
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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.
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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. 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.
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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 Information about FRENCH LEASEBACK
Visite The Link
https//frenchrealestatelaw-traesch.fr/leaseback-i
ndemnite-eviction/
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Thank You
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