English
FrançaisI have a friend prepared to take over the lease (subject to mortgage) and to continue with the same terms. Do I need the management companies permission or do I just somehow formally notify them (via Notaire?).
BTW the lease has just ticked over the initial 9 years. Neither the management company nor myself have made any representations as to the next step. Is this significant? Will this cause any complications?
Comments
JuanAzur
selling leaseback
8 March 2010Strider
From what I have read, the lease automatically becomes renewed if neither party does anything. I am not sure of the duration....perhaps another 9 years
jaward
selling leaseback
9 March 2010Strider,
I think you should have given the management company 6 months notice and kept your options open,either to sell as a classic(subject to any penalties)or to renegotiate a higher rent!
You may well have missed the deadline for either of these options!
john
JuanAzur
selling leaseback
9 March 2010Seamus
In your opinion what is the best approach to take as you near the end of the lease? Is it expensive to negotiate a new lease i.e. in terms of notaires expenses etc? Can you negotiate more favourable terms i.e. a week in the high season? Does the rent follow the INSEE index or is that up for discussion at the end of the 9 years. All of this seems to be a grey area.
strider
selling leaseback
9 March 2010Hi again, thanks for yor replies.
It seems a bit drastic to be automatically committed toanother 9 years. There is nothing in the contract that states this. Is this another example of default commercial law that does not need to be specified? There may be a way out however as the lease talks about a 10 year duree from the October after signing (which goes up to October 2010). I will post the clause (in French) for another opinion.
I don't want the hassle of a tradional rental but I can't see the Management Company giving much away. I will contact the management company to try and see what my options are re. selling with or without the lease.
Has anyone ever sold a leaseback with or without the original lease?
Has anyone got to the end of a leaseback yet?
strider
selling leaseback
9 March 2010So, if I've dropped into the next 9 years by default (see above) the only way I can get back what I paid for the property is to get out of the lease by paying compensation to the management company.
Leasebacks are sold with capital appreciation being a big plus factor, but even this is doubtful.
If I sit tight, within the lease, and economic conditions improve, the yield will still limit the price I can achieve.
What would you consider a reasonable yield at present (no owner weeks)?.
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