Leicester based property specialists MAZECROFT have partnered up with Logical Investment Options who have Headquarters near Norwich in Norfolk.  The company have become a first port of call for investors across the UK and expect to source some £25M of property for UK buyers looking for investment or holiday property in France this year.

Logical Investments, have partnered with Mazecroft , and our developer is twice a winner of the prestigious Bentley International Property Award for Best French Development.

Pradip Modhvadia, Mazecroft’s UK Managing Director explains what the ‘leaseback’ scheme means to Mazecroft clients, “Firstly, it’s not a UK based scheme, the French government introduced the scheme 20 years ago. However, we believe you really do need to know where to look for the best returns.

In a nutshell the French Government want to increase tourism levels in France, so they offer builders and holiday companies a significant tax break by allowing the “leaseback” scheme in certain parts of France. 

Our development partners in France construct the properties. Our clients buy these properties, usually off plan. The developer then finds a tenant in the form of a holiday company, who agree to lease the property from our clients for between 9 and 11 years.

We see that the tenant is an established company that agrees to pay a guaranteed level of rent which is index linked (usually a figure representing between 4% and 5% of the purchase price per annum). They are also responsible for routine maintenance during the term of the lease.

In return for entering into this arrangement the French Government refunds our clients the full amount of VAT on the property - which in France is 19.6% within 6 months of the purchase. This makes ‘leaseback’ property a very attractive ‘low-deposit’ option for anyone considering a long-term buy to let investment.

Status allowing, Mazecroft can also arrange for a French Bank to advance 80% of the gross price of the property. So, if for example you purchase a ‘leaseback’ property at 119,600 Euros you would have a 95,680 Euro mortgage - then within 6 months of purchase you would receive the VAT which amounts to 19,600 Euros. That equates to 95.6% borrowing based on the net cost of 100,000 Euros, at a very competitive interest rate”.

Mazecroft also secure what they call ‘self use’ periods, whereby ‘leaseback’ owners can use their property for a holiday each year. For example… Located in the picturesque village of St. Laurent de la Cabrerisse, Les Jardins de Saint Benoît is set in the heart of the Languedoc region bordering Northern Spain. There is a near perfect Mediterranean climate of over 300 days of sunshine each year and easy access to and from major cities and activities.

Carcassonne and Perpignan are a mere 30 minutes away, with Montpellier, Toulouse and Girona just a 90 minute drive…even Barcelona is just a brisk two hours south via the E15 motorway.