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Leaseback

Alternative rental income

The alternative to a leaseback is to buy a classic freehold new build apartment or house and let it out to local residents. Tenancies are usually for 2 or 3 year periods and since the tenant is living in your property full time, you cannot spend your holidays there.

Given that the rental income is not usually guaranteed and the VAT is non recoverable, why would you choose this type of purchase? Control is the main answer. There is no long term commitment (as with a leaseback) and as such these properties are perfect for anyone looking to move out permanently to France in the future (such as on retirement) but want a rental income to pay for towards the property in the meantime.

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