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Lease purchasing options:
Option 1 - “Lease with guaranteed annual
income and 8 weeks personal occupancy” (2 in
winter + 2 in summer + 4 out of season*)
- The price of the apartment is payable excluding VAT
(19.6%).
- The owner is guaranteed an annual rental income
according to the size of the property and the resort.
The guaranteed rental incomes for Option 1 are
calculated on the price excluding vat and are
index-linked to the French cost of construction
index, capped at 1.5%.
- The owner retains 8 weeks use per year during the
course of the 11 year lease.
Option 2 - “Lease with price reduction and
10 weeks personal occupancy” (3 in winter + 3
in summer + 4 out of season*)
- The price is payable excluding VAT (19.6%)
- The purchase price is further reduced by the
payment in advance of the rents (rental credit paid
upfront). This results in a total reduction of 30% on
the original Vat inclusive price.
- There is no annual rental income for this option,
as there has been a discount on the purchase price.
- The owner retains 10 weeks use per year during the
course of the 11 year lease.
It is possible to take your personal occupancy weeks
in other MGM Residences. Conditions however apply and
there is a € 70 admin.fee per exchange.
(*Off season weeks are
typically in May - June - September - October. During
this time, the facilities and the reception are
closed; the owner only has access to his apartment or
an equivalent apartment. Terms & conditions
apply)
Maintenance of the property
- This is a hassle free investment for the owner as
the maintenance of his property is entirely taken
care of by the management company (CGH Residences)
throughout the lease period.
- CGH Residences will run the residence as a hotel of
self-contained apartments: when arriving in your
apartment for your own holidays, your apartment is
clean, the beds are made, there are clean towels in
the bathrooms, etc.
- CGH Residences will maintain all apartments,
furniture and equipment (repairs, replacement, etc)
at no cost to the owner.
When the lease has expired the property will be
returned to the owner in top good condition (apart
from the "fair" wear & tear).
Charges
- The management company CGH will pay all the bills
(water, electricity, heating, insurance, service
charges, Taxe d'Habitation / Residents tax ...).
- The owner pays a part of the service charge which
is fixed for the term of the lease at € 25 per
sq. m of the apartment internal area.
- The owner will also pay the Taxe Fonciere / Land
tax (on average € 10 - €1 2 per sq. m of
the apartment habitable internal area / year).
Legal Fees
Notary fees (legal fees) for the Deeds of Sale amount
to 2.5%- 3% and are payable at the time of signing
the documents.
Account management fees
By law the leaseback scheme requires the appointment
of an accountancy firm to handle the Vat registration
procedure and the owners’ annual income tax
declarations. This appointment is carried out by the
developers.
- A “one off” accountancy charge of
approx. € 125 incl. Vat is made for the
registration and Vat refund administration procedure
- An annual accountancy fee of approx. € 258
incl. Vat is payable for the accounts management and
preparation of the annual tax return.
Arranging your personal stays
- The owner is given priority on the choice of his
weeks (as long as he returns his booking forms by the
30th August for the winter season and by the 15th of
February for the summer season).
- The owner will also have the possibility, for a
fixed fee of € 70 euro/week, to exchange his
weeks for other weeks in other leaseback residences,
subject to availability.
Facilities
- Most MGM Residences feature facilities such as
swimming pools, hot baths, gyms, steam rooms, saunas,
etc, access to which is free of charge.
- The "Spa and Beauty centres" offer a range of
massages, treatments, etc which are available on a
“pay as you go” basis. The owner benefits
from a 15% discount on all the prices.
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