Chateau de Jouarres -Rent

19 January 2010

Hello fellow members,

As an owner of an apartment at Jouarres is anyone else experiencing difficulties receiving their quarterly rental payment. Despite requests I still await August and November 2009 and do not hold out much hope for next months as well.

Submitted by mjpscott on

I have had no rent despite a promisefrom OLEA in september


I have been sent an email from OLEA as follows indicating OLEA have been taken over but received no notification myself directly - very worrying


Anyone else with any ideas what to do or are there any groups out there to sort this out?



Email:


M. SCOTT,



Olea was taken over by Ivan OBADIA Group SL since 15th December. The new management is reorganizing the company and should communicate soon about payment of rentals.


For all request regarding your property, you can do it on clubinvest@olea-vacances.fr.


I will forward it to the new management if necessary.



Best regards,


Laure BRANDENBURG


Olea Résidences d'Hôtes®


155 Rue Paul Langevin


Zac de la Robole - Les Alizées - Bât.B


13856 Aix-en-Provence


Tél +33 (0) 442 384 730


Fax +33 (0) 442 270 161


www.olea-vacances.fr


clubinvest@olea-vacances.fr

Submitted by mjpscott on

Dear All


One of the members has posted this as a PDF which is very useful info so i have posted for full view



kind regards


Mike


Fabien CORDIEZ


AVOCAT A LA COUR & SOLICITOR*


19 RUE DE MONTIGNY


PLACE DES TROIS ORMEAUX


13100 AIX-EN-PROVENCE


FRANCE


____________________________________________________________ _______________


____________________________________________________________ _____________________________________________________


fabien.cordiez@solicitor.fr – Case Palais 227 – Car Park: Bellegarde


AVOCAT A LA COUR D'APPEL D'AIX-EN-PROVENCE - SIRET N° 442 975 991 00039


MEMBRE D'UNE ASSOCIATION AGREEE. LE REGLEMENT DES HONORAIRES PAR CHEQUE EST ACCEPTE.


MEMBER OF THE LAW SOCIETY OF ENGLAND & WALES – LAW SOCIETY NUMBER 331485 – *SOLELY PRACTISING AS AVOCAT


France


Tel. +33 (0)486-688-968


Fax +33 (0)486-688-660


UK


Tel. 0207-148-5563


Fax 0207-148-5564


Ireland


Tel. (01)-431-1301


1-800-930-132


Fax (01)-431-1302


1-800-930-133


www.solicitor.fr


Member of The Law Society


of England & Wales


French Leasebacks in trouble: What's changing in 2010


20 January 2010


The year 2010 may bring some relief to some 600 investors in one of the 70


French leaseback resorts that are in financial turmoil. Indeed, to attempt to break


the deadlock, 3 provisions were enacted in the Finance Act 2010. Here is a


summary of the main changes.


1. 1. Re-paying the Vat rebate over three years.


Investment in French leaseback schemes entitles owners to recoup VAT on the


purchase price. The tax benefit is given to owners in exchange for a commitment


to rent their property to a management company for at least 20 years. In case of


non-compliance, investors must return their tax benefit. Until now, investors had


a twelve months 'grace' period to find another manager, failing which they


became liable to repay VAT, in one go, to the French taxman. Under the 2010


Finance Act, investors are allowed to spread repayment over three years. This


facility applies when leases are broken for a period exceeding twelve months as a


result of the management company's liquidation, or at the initiative of owners for


breach of contract (default of payment of rent by the management company).


Regrettably, these new measures come too late and will obviously be of very


little relief to foreign investors. Many of them have already lost years of rent and


are now forced to accept lesser rental income from unknown leaseback


companies.


2. 2. Eligibility to VAT recoupment of leases that offer a variable rate.


Investment in French leasebacks is based on a menage a trois: the developer,


investor and manager. Essentially, individuals acquire a home from a developer


and conclude a commercial lease with a management company who pays rent.


Until now, rents were 'guaranteed', that is to say fixed. For example, for a


purchase of 100,000 Euros, the management company pays a rent of 4%, which


corresponds to an annual rent of 4,000 Euros. To avoid unpleasant surprises and


take greater account of market conditions, leaseback companies now tend to


introduce a sliding scale in their leases. Instead of a fixed or guaranteed rent of


4% for nine years, operators often guarantee a minimum basis of say 2.5% for


____________________________________________________________ _____________________________________________________


cordiez@solicitor.fr – Case Palais 227 – Car Park: Bellegarde


AVOCAT A LA COUR D'APPEL D'AIX-EN-PROVENCE - SIRET N° 442 975 991 00039


MEMBRE D'UNE ASSOCIATION AGREEE. LE REGLEMENT DES HONORAIRES PAR CHEQUE EST ACCEPTE.


MEMBER OF THE LAW SOCIETY OF ENGLAND & WALES – LAW SOCIETY NUMBER 331485 – *SOLELY PRACTISING AS AVOCAT


nine years and pay back each year a given percentage of their income. Payment


of rent becomes "mixed", i.e. composed of a fixed and a variable part. In the past,


such "mixed" rent composed of a fixed and a variable element posed a tax


problem. There was a risk of re-qualification of such income as industrial and


commercial profits, which took away the tax advantage to the owner. This risk


disappears as from 2010.


3. 3. Owners can now sign a management proxy/mandate instead of signing


a commercial lease


The 2010 Budget Act introduces a new flexibility. In the past, where a


management company experienced difficulties, investors had no other option but


to sign a new commercial lease with another operator. Under the new regulations,


investors are no longer obliged to sign a commercial lease with a new leaseback


company. They can, without jeopardizing their tax advantages, give a


management mandate to professional, such as a specialist hotel management


company for example, unless they prefer to manage the resort themselves.


This new possibility is subject to two conditions. On one hand, the "selfmanagement"


entity must manage at least 50% of the apartments or villas. On


the other hand, this self-management is only allowed where no other


management company has been retained after a period of one year.


The above measures are insufficient. Most leaseback owners, especially foreign


investors, need to find a solution much faster. This alternative might nevertheless


be of interest to investors who had contracted with Résidhotel. Some of these


investors, who have already been dealing with two leaseback companies


(including the Quietude Group and subsidiaries…), face having to negotiate new


leases with a third management company, if they continue to opt for a


commercial lease! The possibility to give a management proxy instead of signing


a lease could represent an attractive option for them. The fact that, unlike with a


commercial lease, no compensation is due to the manager in case of non-renewal


by owners, makes this new possibility even more attractive to investors.


Fabien Cordiez


Submitted by ncorps on

That`s a very interesting meaning of the word guaranteed:


"rents were 'guaranteed', that is to say fixed."


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