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French Leaseback Properties

France - French Leaseback Properties

Properties will more commonly be apartments or townhouses and will range from studio apartments to two bedrooms. Larger properties tend to be rarer and when they are available sell very quickly.

The developments are usually sold “off-plan” which is very common in the French property market. Potential purchasers will be able to consult detailed plans and summary building specifications prior to purchase.

When purchasing leaseback property and deciding on the size of the property to purchase it is important to take into consideration where the property is located. Studios rent very well in large cities such as Paris, Lyon and Marseille, but there is not as much demand for these size properties in rural areas, say for example in the heart of Burgundy.

Some investors prefer to purchase several small studio apartments in central locations with good transport links to diversify their portfolio whilst others will prefer a three bedroom apartment in an upcoming ski resort.

Depending on the French fiscal status of the development (ZRR or LMnP) the properties will either be furnished by the property management company (who in this case carry the price of the furniture) or there will be a set furniture package which is purchased by the owner. In the event that the cost of the furniture is to be paid for by the owner this is usually included in the purchase price but it is advisable to seek confirmation.

Purchasers will not have a choice of the finish of the properties (ie. paint colour, colour of tiles etc) as the properties are generally equipped and decorated to the same finish throughout the residence.

The properties also come equipped with fitted kitchens which, depending on the development, will include items such as hobs, extractor fans, sinks, cupboards, microwave, oven, dishwasher and so on.

One aspect of French apartment blocks which differs to apartments in the UK is that they are not leasehold. In fact, in France you have what is known as a copropriété (co-ownership) and all the co-owners own a certain percentage of the communal areas - for example, Mr X, in apartment 1 may own 35/10 000 of the communal areas.

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