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

The buyer of the French leaseback property signed a leaseback contract with a operating company. However only the tenant wrote the lease contract. The waiver to an eviction indemnity could only appear as a decisive element of the deal. Most importantly, the buyer of the French leaseback would (or might) not have signed the contract. If their attention had not been attracted by this financial interest, they might not have contracted.

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

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  1. Welcome To French Lease-back

  2. The owner of a French leaseback wants to sale his property What is the process for a French Lease-back Resale ? Two options 2 1 Selling with the commercial lease Selling without French Lease-back Resale

  3. 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).

  4. 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.

  5. 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 indemnitéd’éviction (eviction damages). Next page has example…………………..

  6. 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 court’s 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.

  7. 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 (indemnitéd’occupation, like a rent but after the lease is over) must be equal to the rent paid back to the lessor. According the this expert.

  8. 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.

  9. For More Update Visite The Website https://frenchrealestatelaw-traesch.fr/leaseback-indemnite-eviction

  10. THE END

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