10 February 2011 by Finkster

I have recently purchased a property that is currently on leaseback and the first 9 years is due to expire in September this year. I do not plan to sign another leaseback contract but wish to use myself and also rent privately. In this situation, who has to pay (if anyone) the TVA - the seller, the b uyer or a bit of both?

Thanks

Andy

Comments

10 February 2011 by Finkster

Hi - thanks for your answer. As we bought after nine years, do you mean we have to pay back 11/20 of the TVA or 100%

10 February 2011 by olly

Andy,


you would pay back 11/20 th of the TVA


It is calculated pro rata

11 February 2011 by JuanAzur

You might also have to pay compensation to the management company for not continuing the lease

11 February 2011 by pboyles

Yes I was going to ask if you had any trouble with not renewing the

lease. It seems the company can force it to be renewed.

11 February 2011 by Finkster

Thanks all for your help. The current management company are Pierre Vacance so I'm hoping there won't be a problem with not renewing the lease.

11 February 2011 by pboyles

I'm with P&V also, from what I can make out (they are being very

evasive) you will have two options

1 renew the lease in their terms and pay 15,000 to 20,000 euros

refurbishment costs

2 refuse to renew and be liable to pay them compensation. The

amount will be roughly 2 years rental income.

It seems that there will ne no way to take possession without paying a

five figure sum. Of course on top of that you'll have to pay back half

the VAT saving you made in the first place.

You can see why people are starting to realise that this was all a big

con.

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