Last-born from the Group Lagrange, the property branch conceives and markets top of the range apartments and facilities within tourist residences. Lagrange Patrimoine offers to buyers the possibility of building a quality property portfolio with the leaseback scheme. When investing with Lagrange, whether you are a French or a foreign investor, you benefit from hassle free management, personal usage, guaranteed and indexed rental incomes but also various tax advantages (such as the refund of the 19.6 % VAT on your investment).
NEW : some programmes are now eligible for SIPPs!

Definition of the Leaseback Scheme

One of the best ways to invest in French property is through the Leaseback Scheme, Introduced in France in the 1960s to encourage the development of tourist accommodation. It guarantees you income from the property you buy, at a relative low up-front cost. Most of the maintenance costs are paid by Lagrange and you have personal use options.

What are the main features?

> You purchase outright a new property – fully furnished
> You do not pay the VAT (19.6%)
> Your property is leased to Lagrange for 9 to 11 years
> You receive an index linked guaranteed rental return – typically 4.0% to 5.0% of the purchase price
> Finance of 80% can be arranged with a French Bank (up to 100% in some case)

What does “Leaseback” mean?

You buy the property outright but you agree to lease it to Lagrange management branch for rental for a fixed number of years (minimum nine). In return, you are entitled to recover the VAT (19.6%) and you are guaranteed a net return on the rental of between 3% and 5% after all management and operating expenses have been paid (but before mortgage repayment and taxes).

What are the benefits?

> Hassle-free management
> VAT refund – The French government will refund the VAT at 19.6%
> Low risk – Guaranteed rentals of up to 5% per year, index linked.
> Choice – Exceptional sites by the sea, mountain, country or city. Excellent facilities and equipment.
> Potential capital appreciation – France is one of the last countries within Western Europe that to date was spared the property hype and hike, instead offering steady growths and returns.
> Potential rental increase – Your rent will increase periodically by reference to a French construction index. As an indication, the construction index has increased by c.2.5% per annum over the last 10 years.
> No French tax on rental income for a period of at least 20 years – The combination of the mortgage interest deduction and the property amortization will relieve you from paying French Income tax on the rental income.
> Easy financing – Subject to some lending criteria a French bank will lend c. 80% of the price (up to 100% in some case).
> Possibility to occupy your property up to 6 month a year or to exchange your weeks with another of our 180 residences in France

What if I want to sell within the lease period?

As you own your property outright, you can sell it at any time within the lease period. You will however sell the property with the lease agreement intact for the remaining period of the lease.