Liquidation of leases

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Liquidation of leases

Hi, Id welcome advice on an evolving situation.

I am in year 8 of a 9 year lease on a Tourism Residence with 90 lots managed by Eurogroup. I was considering giving notice and paying the eviction fee as payments are always late and Eurogroup have history of offering significant reductions on second term rents and I could make more income and control my apartment, if it went to classic ownership.

However, three weeks ago we were informed by the syndic that a company which holds 47 of the lots had gone into administration and the liquidator was going to request the cancellation of the bail with Eurogroup of the 47 lots in court. This would leave only 37 lots managed by Eurogroup and the Tourisme Residence status would lapse resulting in the cancellation of all leases, so happy days for my part.

The predominantly French owners have either one year or three years to run on the current lease (9 or 11 year terms) and were worried about tax repayments. They stated two types of tax repayment:

1. Full refund of the tax reduction - 25% of the purchase price - the maintenance of this advantage conditioned by a holding of nine years

2. Full or partial refund of VAT - 20% of the purchase price - full benefit realised after 20 years

As a UK buyer, I dont recall receiving benefit 1. Does anyone know if this is only for French tax payers?

The syndic therefore paid for a lawyer to attend the court hearing to try and stop the liquidation of the 47 leases. The judge agreed to a delay until end January to try and find a buyer for the 47 lots, who would continue leases with Eurogroup.

Eurogroup are proposing to buy the 47 lots if the majority of owners agree to a new 9 year lease from the end of January and a 25% reduction in current rents. I am assuming the majority of the French owners will go for this offer.

Any advice on if this happens can I not agree to sign a new lease?

Would I be liable for an eviction fee if I wont sign under these circumstances?

Am I correct in assuming all current leases will have to be cancelled en masse before new leases can be signed? Or if I refuse could they not cancel and continue my current lease?

Grateful of any advice. Thanks

Polaris

I'm in the same boat and have exactly the same questions. Wee should stay in touch.

My advice is to NOT sign a new lease.

We (and all other owners) at our site are in year 13/14 of ownership.

First 9 year lease tacitly renewed so can terminate lease whenever we wish. but Eurogroup demanding exit fees - upto €68,800.

Let the judge liquidate the 47 leases, Eurogroup then lose their Residence de Tourisme status and you will not have to buy your house back.

Get good legal advice on this.

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