French Leaseback Nightmare

[Leo]

There's endless negative stories about how they were sold, rents having a set artificially high to illustrate a yield that supported a massively over inflated sale price etc.

Like much in life, people only take the time to register and post about negative experiences.

 

[T McGibney]

Like much in life, people only take the time to register and post about negative experiences

@MrEarl 's post resonated with me as over the years in the course of my work I have heard several negative stories from customers and contacts about French leasebacks, and none positive.

 

[TomEdison]

Well, yeah, but you are much more likely to hear about the investments that went wrong, or were problematic, than the ones that went smoothly.

(Not saying there wasn't a systemic problem with the French leasebacks — there may well have been; I wouldn't know enough to say either way. And they're not an investment that I would have considered making. But all that's still consistent with lots of them having performed well or acceptably,and having attracted little notice as a result.)

 

[T McGibney]

Well, yeah, but you are much more likely to hear about the investments that went wrong, or were problematic, than the ones that went smoothly.

Oddly enough, when part of one's trade is the making of Capital Gains Tax returns, the opposite is the case.

 

[jfrank]

Tommy, all I can say is my experience over 15 years is very positive. I built up significant equity in the apartment which I cashed in after 15 years. Sure, the leaseback company was a pain in the proverbial and were continuously late in paying rentals and were always "inventing" maintenance work but on the whole, I got my "deux ou trois semaines a la Sud du France chaque annee" for a very modest cost and it provided a base to explore the wider South of France.

 

[joe sod]

Id say it's more to do with the fact that these investments were made 20 years ago so it's not as raw as it was a few years later and during the financial crash. Therefore if people come out with a small loss or break even they are now happy about the situation because the money has long been discounted . Its not the same as a huge investment that you have just recently made.

 

[nicola sun]

hat specifically? I presume that there are/have been lots of leaseback schemes over the years in France and elsewhere? Are you referring to a specific one?

This was one of the 3 complexes (le Petit Lac) that was included jn the investigation. It’s been 20 years but I believe they are moving the judgement to Ireland now in order to get the money. They paid this mortgage for many years without getting any rent and were forced to stop paying it due to this. I know at the time there were many many people in the same boat and meetings were had to try and make plans. I’m just wondering if anyone else was in a similar situation, as the first poster was and how it worked out for them.