English
FrançaisI have been speaking with this company recently regarding a leaseback purchase and was surprised by the information provided by the salesman.
Pierre & Vacances, probably the largest developermgmt company, supposedly discount the purchase price of the property by the VAT amount. When it comes to borrowing however, most banks (according to the salesman) will only provide a mortgage on the discounted price, not the full price.
I thought that a bank would lend against the full price (including VAT) and that the VAT refund (which could take a year to come through) could be used to offset your deposit. In this way, a purchaser only needs to up-front the deposit for this period.
Is the above assumption correct and, if so, are Pierre & Vacances being disingenuous in the way that they discount their properties?
Comments
tsturner
Pierre Vacances
20 December 2006I have obviously misunderstood it then. I was working on matehmatics similar to shown on this website:
http://www.stephensmithfranceltd.com/index.html?SCREEN=Lease BackProperty&SID
jaward
Pierre Vacances
13 February 2007mark
Your two posts on the vat refund seem to be odds with each other.
On my leasebacks i paid the vat inclusive price and claimed it back myself through my accountant.
I know on some leasebacks you dont have to pay the vat upfront and then the delveloper claims exemption on your behalf.
At least thats how i thought it worked.
john
f
jaward
Pierre Vacances
15 February 2007Sorry seamus,i cant think where i got mark from.
Thanks for the reply.
john