Eurogroup

John,

We try to be pragmatic and look ahead. We spoke about the development of Uzès and we got the P&L. As a former international auditor we checked the account and there is a loss. So or we ignore the loss, allow EG to exit and we will find a new management company at -25% or -30 or -45% or we negotiate with EG a minus 25% but ask for compensations such as a variable rent based on turnover, additional free weeks...ask for a 3 year business plan to do projection...so try to understand what happen instead of just looking at the past in a past world.
However we can consider that EG is not the best company to achieve a decent turnover on a city resort and we change it.

You have a buy to let in UK, if your tenant is not paying the rent because he lost his job, what do you do???

I know that you have a mortgage to pay, common charges...maybe you can extend the duration of the mortgage, maybe you can accept a rent decrease but ask EG to pay for land tax...

Just a question: are you invoicing to your management company the household refuse tax to reduce your costs?

Regards

Bertrand

Good luck in dealing with Eurogroup-they were involved in an illegal occupation of a couple of properties once run by Monnier Group (another must to avoid) so I think you need all the help you can get.

Bertrand from C'est la Vie is very knowledgeable and you could do a lot worse than follow his council. It is essential you get together as a strong owners group to share costs and get some good professional help.

Why have you let it go this far? Did you not send a commandement de payer and bring in the bailiffs?

Good point!

The development is les residences des alpages (also les

lodges des alpages) in la Plagne.

Managed as I mentioned by Eurogroup.

Kind regards

Colm

I am a recent arrival to this forum but was looking for

help on the internet and stumbled across it.

I have a property on a LeaseBack arrangement with

EuroGroup which I purchased in 2004.

Eurogroup have not paid me any rent for the last 12-18

months.

I have not received any communication form Eurogroup

telling that this would happen or explaining the non-

payment.

I have received regular and complex/dense legal

documentation form the Syndic which would appear to

indicate that they are in dispute in some manner with

EuroGroup but I am unable to completely understand the

documents as my french is not up the task of reviewing

legal documents of this nature.

Does anyone have any suggestions for how I would figure

out what is going on and what my options are?

I am based in Dublin, Ireland, btw.

John,

The household refuse is part of the land tax you just receiced to pay. Read carefully your lease contract and you may discover that the management company has to refund this part of the land tax. Don't expect from your accountant in France to do it, C'est La Vie is the only one accountant company to do it. See our advert above.

Bertrand

Juan,

yes theorically if they cannot pay you evict them and find another tenant if the new tenant is ready to pay the former price which depends on the renting market....But you are right here the law protects tenant maybe too much.

We cannot ignore the law.

Kind regards

Bertrand

Bertrand

I will tell you how it works in the UK and Ireland. If my tenant doesn't pay his rent because he loses his job then I evict him and find another tenant. If I can't I will be able to use the house as I wish, allow my son to stay there or whatever (it is MY choice). In French law I can't do this because the law always favours then tenant...this is wrong. The law should favour the party who keeps their part of a legally-binding lease.

Bertrand

I understand your stance on trying to make the most of a bad situation!

However,Eurogroup legally wouldn't have a leg to stand on if they reduced the legally contracted rent,if this went to court.

It is only that they can bully there way through with threats of withdrawal after each 3 year period.

In your opinion,if someone could sustain the financial strain,would they win the day with regards the contracted rent?

Hopefully this 3 year clause is now gone,but they will find another way to pressure owners to give way!

I don't understand the question on refuse disposal.

I give my co-op bills and management bills to my accountant.Is there something other he should be doing?

Please realise that if you accept this you are devaluing your property by 45%.

John

Unfortunately, both the yield and the INSEE index increase are contained in the legally binding document. Accepting 6% instead of 22% is also allowing them to devalue your property. It may be more palatable than a rent decrease but it is essentially the same thing... the French legal system allwing one party to break a legally-binding lease.

huwalun

I do appreciate the situation you are in and have to do the best of a bad deal!.

Unlike you,we were not talking about the agreed rent or any reduction.We were dealing with the INSEE increase which had no cap on it.The INSEE increased by over 22% in the relevant 3 year period.

As you probably now know,that the value of your investment is linked to the yield!So after tracking the insee for the last 3 years to see Eurogroup reneging on a legally binding contract was galling to say the least.If the boot was on the other foot they would have made pay!

Unfortunatley due to legal costs and hassle and being realistic in the economic climate we accepted a 6% increase.

Bertrand,

What sort of nonsense is "we can calculate the appropiate decrease"

This leaseback was bought with a legally binding agreed % rent and is now being decreased.They are a supposedley a law abiding muti national company threatening to withdraw unless they can force through a rent reduction.

Can this owner re-negotiate his buying price,mortgage and co-op fees,it's absurd.

If it wasn,t for the threat of this 3 year withdrawal(which they apparently can't do)this owner could stand firm and sue them.

When i bought,one of the things that was made clear was that "that the rent was not your problem"

Another point on misselling,to add the numerous others!

Regards

John

Good afternoon,

Could you tell me which development is it?

it is a negotiation between 2 parties. First of all you need to ask for the Profit and Loss account of the resort on the past 2 or 3 years. Fax it to us and I will give you my opinion here.

We have already experience with EG in that sort of negotiation. Once we have xxxyzed the result, the occupancy rate...we can calculate the appropriate decrease. Any rent reduction must be trade off against a variable rent, free weeks...

Bertrand
info@clvproperties.com

Kind regards

John

Thanks for the info. can you believe how the French operate... a judge can change a legally binding contract to reduce rent. What are the chances of him reducing the amount of interest we pay on a mortgage (i.e. another legally binding French contract)?

I wouldn't believe a word of what Eurogroup says.

On our development in st.Maxime in the south of France they refused to pay the full 3 year increase in INSEE(over 22%)saying they would pull out at the next 3 year period.They will any tactics available to get there own way!

I spoke to there legal representative who said "That in a recession they could ask a judge to reduce the rent".So instead of a legally binding contract to pay the full INSEE increase they put pressure on knowing most won't contest it due to legal costs and hassle.

After the recent change in the law with leasebacks can they still pull out after each 3 year period?

Regards

John

Do you really believe claims by a management company? I'd suggest that you contact Bertrand above as he seems to have sorted out a new management company for Mutley's complex. I really believe that in these cases your apartment should be handed back to you to rent out yourself. By doing this you are still promoting French Tourism.