Many individual investors having acquired properties in France under leaseback programs are now facing difficulties to pay the monthly installments of their French mortgage.<\/p>\n
These investors had purchased a property in France, usually in a \u201cResidence de Tourisme\u201d<\/em><\/p>\n To beneficiate from this tax advantages (notably reimbursement of VAT), all the investor in a residence had the obligation of renting out the newly acquired properties to the same management company under a nine year French commercial lease (\u201cbail commercial\u201d).<\/em><\/p>\n The management is responsible for subletting the properties, the most often to holidaymakers for package holidays.<\/p>\n If these leaseback programs have often been profitable to all parties there have been many situations where the tenant, due to crisis in the tourism industry , has defaulted in payment of rent.<\/p>\n The failure of the tenant to pay rent has put the investor in the incapacity to repay their mortgage leading to litigation with French banks.<\/p>\n Our Practice is often questioned about possibilities of obtaining extra delays from the bank having granted the mortgage.<\/p>\n French banks are rarely willing to negotiate rescheduling of installments unless the debtor is prepared to pay a substantial sum up front.<\/p>\n Further, owners who do not live in France are not eligible to French consumer insolvency procedures \u201cprocedure de surendettement\u201d.<\/em><\/p>\n Nevertheless, there is an option for investors having difficulties to repay mortgage in France.<\/p>\n Under article L.313-12 of French Consumer Code The \u201cTribunal d\u2019Instance\u201d<\/em> (civil court for petty claims) can suspend payment of mortgage<\/strong> instalment and interest<\/strong> for a maximum period of two years<\/strong>.<\/p>\n The Judge will order this holiday period if the claimant can prove that it can help to overcome the investor\u2019s temporary financial difficulties.<\/p>\n This could mean for instance: replacement the management company by a new non-defaulting one, the investor\u2019s financial situation improves (i.e. new employment) or the property is sold.<\/p>\n Once the holiday period has been granted the investor\/debtor is in a stronger position to negotiate a long-term solution with the bank.<\/p>\n Each case is different; owners face this kind of difficulty should contact us.<\/p>\n","protected":false},"excerpt":{"rendered":" Many individual investors having acquired properties in France under leaseback programs are now facing difficulties to pay the monthly installments of their French mortgage. These investors had purchased a property in France, usually in a \u201cResidence de Tourisme\u201d To beneficiate from this tax advantages (notably reimbursement of VAT), all the investor in a residence had […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[23],"tags":[16,21,22],"jetpack_publicize_connections":[],"aioseo_notices":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"http:\/\/gregoryhansonavocat.com\/wp-json\/wp\/v2\/posts\/110"}],"collection":[{"href":"http:\/\/gregoryhansonavocat.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/gregoryhansonavocat.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/gregoryhansonavocat.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/gregoryhansonavocat.com\/wp-json\/wp\/v2\/comments?post=110"}],"version-history":[{"count":6,"href":"http:\/\/gregoryhansonavocat.com\/wp-json\/wp\/v2\/posts\/110\/revisions"}],"predecessor-version":[{"id":6725,"href":"http:\/\/gregoryhansonavocat.com\/wp-json\/wp\/v2\/posts\/110\/revisions\/6725"}],"wp:attachment":[{"href":"http:\/\/gregoryhansonavocat.com\/wp-json\/wp\/v2\/media?parent=110"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/gregoryhansonavocat.com\/wp-json\/wp\/v2\/categories?post=110"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/gregoryhansonavocat.com\/wp-json\/wp\/v2\/tags?post=110"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}