12 October 2009 by josh

Domaine du Val de Seine

Hi

I’ve recently purchased a French leaseback property – Le Domaine du Val de Seine.

 

I am now due rent (3 months in arrears) but have only received a worrying email from the management company stating that they have organised an information meeting on the 24th of October to inform tenants about the 2009 resort activity, 2010 forecast, and rent payment issues.

 

Their excuse for not paying any rent is due to the tour operators, paying 60 days in arrears (although I get paid 3 months in arrears?) and also because of the economic climate. They state they are unable to pay now, but are going make a proposal to the owners.

 

The management company in question is CAP SENSORIA.

 

I’m a small private investor and did thoroughly look into leaseback (obviously not close enough). My main criteria for purchasing a overseas leaseback property in France was because of the guaranteed rental income (which is not the case) but also because I was assured that management companies very rarely get into difficulties. There seems to be a worrying trend that more management companies are getting into difficulties.

 

Would the best course of action to contact a solictor at this stage?

Should I wait for what is being proposed?

 

Thanking you in advance for your help.

josh40100.0058912037

Comments

xdot

12 August 2010

Hi Josh


Please could you tell me if you did get your rent in October 2009? Did the company pay you? I am wanting to buy the plot on the development and want to know what I am getting into/ Thanks.


frenchie2803

20 August 2010

I had a very bad experience with a leaseback in Strasbourg. There is no such thing as a "guaranteed rent". If occupancy is low, there will be a cash flow problem and the owners will be left in the cold. The best way to handle this is to contact other owners in the residence and appoint a solicitor to handle your interests, either by appointing a Bailiff to recover your rent dues or find another operator and sue Sensoria for breach of lease.

frenchie2803

24 August 2010

My leaseback property in Strasbourg was handled by Anthaeus and City Park Affaires. We now have a new management company called Exhore (Hotels Cerise) after the owners went to court to evict City Park Affaires.


I don't know if Cap Sensoria is solvent or not but you need to get involved by obtaining the details of other owners, get together as one group and put pressure on Cap Sensoria. You should be able to get the owner's list from the company that manages the common areas in the residence (syndic de co-propriete).

josh

8 December 2010

Hi<?:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />



Just to update you all, Cap Sensoria have now gone into receivership on the 29th November 2010 (ironically, the day before I issued a 'commandement de payer'). For the last year, Cap have been blaming the developer in delays not finishing the site (spa, swimming pool etc). After several late payments, Cap then announced they were taking the developer to court.



It now turns out that the developer was not at fault. A copy of the tribunal outlining the failings by Cap’s Management was sent to the owners. Apparently, Cap was also given money for furniture and other items from the developer.



Firstly, let me get 2 things off my chest about leasebacks (which I’m sure you all know).




  1. Guaranteed Rental: No such thing! Rental is only as good as the management company. The word guaranteed should be dropped (unless it is backed by a bank / insurance company which in the case of leasebacks they are not).



  1. Banks – Surprisingly banks are lending money on the basis that the rent is guaranteed. Surely the Banks should understand the workings (and failings) of leasebacks more than anyone else.


So, where do I stand apart from being owed 5 months rent (3 months in arrears)?


I see myself with 2 options



Option 1: Find a new management company:


Could someone explain how quick can a new management company can be found?



Option 2: Sell the property.


Is it possible to sell the property?


I’ll be interested in what the agent who sold me the leaseback has to say?


What happens about the VAT (the VAT was paid and reclaimed by the developer).

josh

11 December 2010

Seamus<?:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />


Cap Sensoria have stated they have gone into receivership. I'm sure that means no rent.


I have now heard of another management company going into receivership last month.


1. How quick can a new management company be found?


2. I certainly do not have enough income to pay for the mortgage. Can the Banks help?


3. Where do I legally stand?


Thanks

josh

5 February 2011

Hi


They have gone into receivership with debts of almost 1 million Euros so I am sure they are not in "procedure du sauvegarde".


Some of the co-owners have contacted me inviting me to a choose a lawyer but I'm not so sure.


Could someone kindly explain what is the process / timescale in finding a new management company?


Is a lawyer necessary as financially I am now finding it very difficult to continue paying my mortgage?


Thanks

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