They are often sold with a commercial lease that guarantees rental income over a 9 or 11 year period and can be renewed. VAT is not charged upon sale as long as the owner agrees to hold the property 20 years.

The success of an investment like this depends on a reliable, well funded management company. Do your research and choose carefully if you are interested in this type of investment.

Be Aware : Many management companies for leasebacks went out of business after the 2009 economic crises. Some clients have reported that their management company significanly reduced the guaranteed rental return upon renewal of the lease.

Advantages to financing your leaseback with a French mortgage :

• your French leaseback will serve as security so you don't have to place a charge on property in your home country
• interest paid on your French mortgage will reduce the taxable rental income from your French leaseback
• by financing with a low interest French mortgage, you increase the internal rate of return on your investment
• avoid currency exchange loss by borrowing the maximum in euros
• match your debt payment currency to the rental income currency you will receive

French euro mortgages for leasebacks are available for up to 70% of the price excluding VAT. Also :

• not all French banks finance all French leasebacks, be sure that the bank has approved your leaseback program
• interest rates can be variable, fixed for a limited period or fixed for the entire duration
• French life insurance is required to cover your French mortgage
• you will need to open a French bank account from which your mortgage payments will be debited
• deferral of repayment is possible in most cases until construction is completed
• payment for your French leaseback is made before delivery, when the sales transaction is completed