Overseas Investment Property

In recent years, overseas property has been an excellent way for investors to diversify their property portfolio. However, unlike many companies, Serliana will only present you overseas investment properties, which will balance your property portfolio.

French leasebacks

French leasebacks have become the preferred form of investment for many property investors.

French leaseback was introduced in the 1970's to encourage property investment and meet huge tourist, business and residential demand for well managed property. Initially exclusively, to French residents until the 1990's when it was opened up to foreign investors.

How French Leasebacks work.

In short, the leaseback works on the principle that you buy a freehold property, which is furnished and leased back to either the developer or a government accredited management company for up to 11 years.

The management company then sublets the property on a short-term basis, similar to hotel lettings, offering breakfast and cleaning services. Therefore, the rent charged is subject to French VAT (purchase tax).

The French Government agrees in these cases to offset the VAT payable on the purchase of the property, at 16.4%, usually paid back to you within six months after completion.

French leasebacks provide an excellent opportunity for our investor clients to balance their portfolios because:

• No rental voids
• No letting Agents costs
• Index linked rental yields up to 6% PA
• No maintenance worries. The management company pays for the upkeep of your property.
• All leasebacks are in excellent locations where demand is high with massive capital growth potentials.
• Personal usage potentials
• Low Euro interest rate mortgages, which are capital reducing mortgages.
• Tax efficient investment. VAT refunded (16.4%) with only 16% CTG
• All properties are freehold.

French Leaseback. The Buying Process.

Buying a French leaseback through Serliana is a very easy and hassle free process.

• Speak to your dedicated Portfolio Manager about the opportunity that interests you. Your Portfolio Manager will talk you through the investment.
• Once you decide to buy, you will be required to pay 5% reservation deposit to the French Notary escrow account.
• Your Portfolio Manager will put you in touch with our UK solicitor, who will prepare the paperwork for "closing" - equivalent to UK "exchange". At closing, you will be required to pay 15% of the price. From reservation to closing will take 3 months.
• After reservation, your Portfolio Manager will put you in touch with our mortgage brokers who will start the mortgage process. All monies paid are subject to a mortgage offer, and funds will be refunded if we are unable to obtain an offer for you. The offer will normally take about 3 weeks from start to finish.
• The balance of the monies will be paid to the developer in tranches, depending on the stages of construction.
• After completion, you will be paid the agreed rental guarantee
• Within 6 months, the French Government will refund your VAT at 16.4%.

For further details on French leaseback properties, please call one of our Portfolio Managers on 020 7704 8456 or email france@serliana.com