Residhotel in Administration

Grr I still haven't had my rent paid so I am going to take the next steps - I thought I would give them until the end of Jan! Can anyone recommend a good lawyer?

Thanks

You could try contacting Mr Fabien Cordiez. He is a UK

solicitor and a French Barrister (an 'Advocat')

specialising in French property law including leasebacks.

Just google him to get his details.

I understand that in the past other members of this forum

have instructed UK-based lawyers, but these seem to be only

good at selling French leasebacks! When bad turns to worse

the UK so-called French property specialists appear unable

to actually help people receive their rent.

Thanks - I actually used Fabien when I bought my leaseback.

Seamus, do you know when this facility will be available? Also if I issus a CDP and Residhotel break the lease would I then have to get a lawyer involved? Anyone know how long you have to repay the VAT?!

I have tried e-mailing residhotel several times - they don't respond though I know they received the e-mails as they processed my change of address. I have also tried phoning - they put the phone down on me as soon as I start speaking!!

Well done.cordiez40945.8124189815

600

I meant to post 600Euros sounds a bit steep!

John

Seamus,

Why have recent posts been Deleted?

I haven't taken any action yet against Residhotel - anyone else still having problems with them? This is the first time I haven't received my rent for a substantial amount of time.

I have just been Paid third quarter of 2011.

Me again! I have actually just noticed that the statement that I have been sent states that the payment is for 01/10/11 to 31/12/2011. I am confused as that means they haven't paid me for the 3rd quarter of 2011. The previous payment was for 01/04/2011 to 30/06/2011.

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

Is anybody else having trouble getting 1Q12 rent paid by Resid Hotel? We’re waiting for rent for La Clos de la Cite, Carcassonne. This was due 21st April. We have tried unsuccessfully since then to contact Marie Malveau by email, direct line and then via Resid Hotel. We have been told that she is the only person who can transfer that rent to our bank account.

Regards,

Tuulia

I am in the same boat - still haven't been paid for q3 2011 and q1 2012.

Hi Residhotel owners

Please could one of you let me have a quick summary of the residhotel situation.
Did you have problems a few years ago which were then resolved ? But might be having issues with rent again ?
I am asking as we are with Resitel ( La Grange) which has recently gone into sauvegaurd measures and have been asked to sign an addendum offering less rent and increased charges.
If get this resolved could it all go wrong again in a couple of years time ?
Thx

ResidHotel were in administration for about a year from 2009 to 2010. They were obliged to pay the rent during this period, in order to avoid liquidation. On exiting administration, the court gave them 10 years to pay back their debts, including unpaid rents from before they entered administration. That was two years ago and, for my residence, it was only a year before they started paying the rent late again (by up to 3 months). This situation has continued for the past year. We did not agree a rent decrease with them, but they have refused to pay the contractual rent increases over the past couple of years.

Be aware that if you accept a rent decrease, you are effectively reducing the value of your property, as the selling price of a leaseback property is dependent on the rent (not that you would easily be able to sell a leaseback property these days).

Hope that helps.

Hi Clive

Thank you for your summary. Sounds like Resitel are in the same situation as Residhotel were. We have been told if we don't sign the revised lease our lease will be cancelled.
Did ResidHotel try to reduce your rent or increase your charges - or did you simply stay on the same conditions during the administration period?

We haven't signed the addendum and as yet no cancelled lease as threatened. I am beginning to think that having the lease cancelled might be a blessing in disguise in the long run. Although we would have to repay the TVA we would no longer be a lease back even though most apartments in our building will be. Plus, if they cancel lease we will not owe them compensation if we don't renew the lease in the future (apparently on a commercial lease they could claim compensation for lost business !)
So in theorywe should be able to rent our apartment privately through a local agent although we don't know how that would work in practice if Resitel still run the building for the other 90%.
Ours is a ski property so should be rentable in the ski season (I hope).
It is interesting what you say about the property value of a leaseback reducing if the rent reduces. We would like the option to sell in the longer term and you are not the first person to tell me that selling a leaseback is very difficult these days.

ResidHotel haven't yet tried to modify the leases for my residence, but I believe that they are now in the process of trying to reduce rents in some residences. However, last year they did change the way we pay our charges - we initially paid just our bit and they paid their bit, but they have now got us to pay all the charges and are supposedly going to reimburse us annually for their part. So no, leaseback life doesn't necessarily turn out to be rosey, even if your company survives the administration period.

You seem to be well aware of the pitfalls of leaseback. Given the opportunity, I can appreciate how tempting it would be to exit the leaseback scheme. If your lease is cancelled, I believe you may be able to continue without repaying the VAT, provided that you keep your property within tourism and maintain the conditions of the LMNP scheme - I think you must provide 3 out of 4 (or 4 out of 5) basic services, such as laundry and breakfasts - but you would have to check the details.

I haven't received anything suggesting a reduced rent - what are they

suggesting? I will have to check what mine was.

Our starting rent was 4.9% of purchase price ( excluding funiture and parking). The propsed addendum is to reduce our rent by about 15%.

This didn't seem too bad given the current economic climate but in addition to this they added any extra clause which would transfer virtually all the costs to us. Property charges would increase for €20 per m2 to the full unknown cost - we estimated this could be as high as €56 m2. And then would continue to rise in the future - while our rent would be fixed.
Also, they want us to pay tV licence, rubbish costs and possibly the habitation tax ( this is not clear from the addendum).
So if you are given a new addendum check what else they are trying to get away with.
We have not signed the addendum but nor have they cancelled our lease yet - so we are currently in a stale mate situation.
our next rent is due on 30 June - under the sauvegarde measures they have to pay us or face liquidation - or so we have been told !

Guys, I am new to this forum - wish I had known of its existence before today.

We have just discovered that ResidHotel has failed to pay rental once again. I have a place in La Saboia, La Tania. ResidHotel has not notified us in writing, so this information comes from chasing up non-payment by telephone.

The contacts we are corresponding with are:

sonia.licata@residhotel.com<?:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

Marie.malveau@residhotel.com

The excuse appears to be that the French economy blah blah ...

So, I am writing to ResidHotel demanding a response within 7 days and declaring their breach of contract.

Anybody have any further information?

I have just received 2 quarters rent - I am now owed 1 quarter. I never

get a response which actually annoys me more than the late

payments!

Now into 3rd qtr without payment from Residhotel for Clos

de la Cite, Carcassonne. Looking for other owners to start

a more concerted push on them. Occupancy rates seem

reasonable so this is pure theft. A few other owners in

touch already.

I instructed Fabien to do a CDP after being 3 quarters late - typically I

then got paid 1 quarter. I will still be going after the third- the place is

packed! I had my first EVER response from Marie at Resid yesterday!

Sorry - I got paid 2 quarters, not 1!

Good News closdelacite ! I have written to her again this

week but maybe CDP is answer. Good to know there is someone

at the end of the line after all ! Are you clear to Mar 12

then ?

Yes - my q1 rent was due on 10th April. I have been told q2 rent will

be paid in September (it was due 10th July). I know other people have

issued CDPs for their rent - the total cost is around 550 euros.

Hi Guys, what's the easiest way of issuing a CDP? I'm new to this bit ofthe game.

I also spoke to her this morning re La Saboia and got little by way of response except that she does not know when she will see Mr. Malko and cannot give out his contact details, nor confirm when the rent will be paid, other than the end of the month!!! I'm really frustrated at this stage with the constant messing about. I am going to issue a CDP today.

Does anyone have access to a contact for Mr. Malko?

Maybe if we bombard him enough by phone or email he might actually authorise payment. He is very well protected from the mess he makes for everyone else to sort out which seems rather unfair.

Hi Caro - I'm a La Saboia owner - flat 54.

This is the first time I'm hearing of a Mr Malko. Who is he?

Stuart

Tony probably meant 'Mr Mulko'.

http://www.solicitor.fr/commandementdepayer.ht

ml

Hi Fabien - thanks for the correction, but unfortuantely I'm still not sure who he is and how he fits into the whole equation.

Any info would be gratefully received.

Stu.

Hi Stu,

Mr Mulko is Reidhotel's Managing Director.

Regards,

Fabien

http://www.ecdas.com/Propertyinheritance.html#

French Leaseback Issues

Sorry for confusion - yes its Mr. Mulko.

I believe he is the man in charge at Resid Hotel and it is he who instructs Mme. Malveau on who gets paid, and when.

One of the most frustrating things about this situation is the apparent randomness of the payments. Sonme owners in one development get paid and others in the same development dont??

I dont want to let the debt build up as we have already been stung for nearly 8,000 Euro of a free loan already by Resid.

Thanks Fabien and Caro.

So he's the man we should be targetting. Is he at teh same address as Malveau ?

We have payment oustanding also. We were told that we would receive that by the end of September. I don't believe them. We've also paid for installation of WiFi with ResidHotel (Euro 800 for our portion) and it still isn't installed.

Stu.

OK, so I have confirmation from somebody on the ground in La Saboia: as of 18/9/12, Résidhotel went into receivership.

I do not make any claim nor do I warrant the accuracy of the information given above and any decision you make as a consequence of receiving this information will be taken at your own risk.

Thanks Tony.

Residhotel (RH) had previously gone

into Receivership in 2009. In April 2011, the Cannes

Court ruled that payment of admitted claims - i.e. those

claims filed through the 'declaration de creance' process

within 4 months from 25 March 2009 - would be spread over

a 10 years period.

RH are defaulting again. Given that a repayment schedule

already is in force, RH's insolvency means that the

judges of the Cannes Court can now cancel the previous

payment plan and either put the company into Receivership

or wind it up.

Those owners whose repayments were being paid over 10

years are not preferential creditors I am afraid.

I hope the above information is of assistance.

As per my post on another residhotel topic - my keys were returned to me this morning for my apartment at Isola2000 - anyone else?

Did you get any info about next steps?

On 5 February 2013 Rhode Tourisme was wound up by the

Cannes Commercial Court. The Court also ruled that Rhode

Tourisme would keep running the business for another 3

months. The Court-appointed Receiver, Mr Huertas,

envisages cancelling some leases earlier, at the end of

this month.

No legal obligation exists for leaseback owners to

execute a new lease or a management agreement with

another leaseback company such as Zenitude for example.

This means that owners should be able to exit the

leaseback scheme without being liable to paying any early

cancellation indemnity. Beware!: Under a tax viewpoint,

some of the initial VAT rebate may be due, although a

grace period applies since cancellation originates from

Rhode Tourisme's liquidation.cordiez41316.4526967593

Further to my posting yesterday, Residhotel's Trustee

informed me today that all leases will be cancelled on 18

March 2013. Some leases may actually be cancellead earlier.

Fabien Cordiez

cordiez41317.6466666667

Your comments are inappropriate, bearing in mind that I

contribute to this forum on a goodwill basis.

Anyway, people are free to face such situations on their

own or seek professional advice. Knowledge is not 'throwing

good money after bad'!

I just wondered if those of you who have had leases cancelled have had to pay any compensation (I woudl assume not) - just the VAT?

Dear Cath,

No compensation is due to the leaseback company where

cancellation originates from the leaseback company's own

failure e.g. insolvency.

With regards to the VAT which owners were exempted from

at the time of purchase, this should be due, albeit on a

pro-rated basis.

Where a leaseback scheme stops as a result of liquidation

however, French tax authorities give investors a 12

months grace period before claiming the VAT back. In

other words, leaseback owners have a maximum of 1 year to

find another management company. Such management company

shall need to provide those services defined by the Frech

tax code in order for the property to retain its

leaseback VAT-exmption status.

I hope this helps.

Thanks Fabien. Does that also apply (ie no compensation) if you have had a lease cancelled after refusing to agree to unfavourable new terms?

I am not a French tax solicitor but can advise that, to

my knowledge, French tax authorities only apply a one

year exemption where a lease is cancelled following

liquidation, not where leaseback owners have had their

lease cancelled for having refused new terms.

On the other hand, a leaseback company cannot, in normal

circumstances, unilaterally cancel one's lease. Such

cancellation usually happens where the company is in

Safeguard or Receivership and the Trustee

('Administrateur') try and impose new rental terms on

leaseback property owners. In the end, cancellation

arises as a result of the management company's insolvency

and I doubt in such a case the local taxman would

immediately try and reclaim part of the intial VAT

rebate.

Thanks Fabien. I actually meant can the company who cancels a lease chase for compensation if an owner refuses to accept poorer terms while while the company is in sauvegarde and they cancel the lease for that reason?

Dear Cath,

No compensation can be claimed from Lessors where the

latter refuse poorer rental terms.

If the leaseback company is in Sauvegarde, the company's

Official Receiver may threaten those owners who refuse

revised rental terms to cancel their lease. Should this

materialise, no compensation is due to the leaseback

company of course, but part of the initial VAT exemption

may be due.