FAQ/Contact

Who are P&V?

P&V are Europe’s largest developer and manager of tourist properties and are the market leader in leaseback properties with 8 brands in the P&V Group and listed on the French stock market.  P&V have an annual turnover of €1.5 billion, 8,800 employees, 51,000 properties and 7.1 million tourist clients

What is leaseback?

Leaseback is a special status of French property built for tourism defined as a residence de tourisme that benefits from a VAT exemption on the purchase price as long as there is a lease agreement in place for a minimum 9-year period with a single management company.  The management company manage, maintain and rent the property for the owner in exchange for a guaranteed rental income net of running charges and costs (in the case of P&V) and irrespective of occupancy or the market conditions with the options for personal usage or used as a pure investment.

How does the VAT rebate work?

Investors do not pay the VAT on the purchase price and then reclaim it back from the French government.  P&V pre-finance the VAT at the time of acquisition so purchasers only pay the price excluding VAT.

Are the returns gross – what about running costs?

The returns are paid net of all running charges and costs so owners do not have to pay for tax d’habitation, co-ownership fees, insurance, utilities etc as these are all paid by P&V.  

What are the charges in relation to my apartment?

The only annual cost you have in relation to your property is the payment of tax fonciere the rest are covered by P&V

> the co-ownership charges which relate to the common parts of the building in which your apartment is located. Those charges are paid by P&V

> the maintenance charges which consist of (insurance, cleaning, maintenance, technical intervention...) will also be payable by P&V

> the private energy charge, utilities which are also payable by P&V

> the fiscal charges which are the taxes – P&V will pay most of them but you will still be liable to pay the taxe foncière once a year (not payable until year 3 for new build properties).

P&V will not be liable to pay for charges which relate to major repair works which are listed in article 606 of the French Civil Code. This is not specific to this property or this management company, this concerns all similar residences as it is part of French law. 

Is the rent fixed for the duration of the lease?

The rent is index-linked (with a cap in some cases) to the Rent Reference Index http://www.insee.fr/en/themes/conjoncture/indice_loyer.asp so increases in line with this on an annual basis.

Can I exchange my weeks at other P&V properties?

Yes – all owners regardless of which ownership formula is chosen (pure investment with no usage or with lots of usage) benefit from a P&V owners discount on stays in any P&V Property – there are nearly 300 resorts in the Group.

How long is the leaseback period?

The leaseback period for most P&V leaseback properties is 9 or 10 years and is renewable.  For Center Parcs the lease period is 10 years.

What happens after at the end of the lease?

P&V will be in contact with the owners 6 months before the end of the lease to discuss the renewal of the lease and the terms of it should the client want to increase or decrease their amount of personal usage.

Can I sell the property whenever I want?

Yes – you can sell whenever you want – there is no significance in waiting for the end of the initial lease.  There is no longer a pro rata VAT repayment as long as the new owner continues with a lease agreement and therefore keeps the residence de tourisme status of the property.

Is there any VAT rebate when I sell?

No – as long as the acquirer continues with a lease agreement – even if the terms of the lease are different to the seller – there is no VAT rebate when the property is sold

What is the re-sales market like for P&V leasebacks?

The P&V re-sales market is very active.  We have 7.5 million tourist clients staying in our properties every year and a large portion of re-sales are sold in our on-site sales offices to these tourist clients.  The rest are sold through our huge network of sales agents and their partners.  As everything we do is driven by our tourism business, our properties are always in excellent locations with good, access, facilities and amenities.  As the market leader, clients are happy to leave the property management to us and to enjoy the hassle-free ownership with guaranteed returns and no running costs. 

What if I want to have more personal usage for the renewal of the lease?

You can have more usage and just need to sign a new lease to reflect the extra usage and amended rental returns.

Are there any costs in the future to renovate the property?

Yes – although P&V take care of all running costs and normal upkeep and maintenance of the property as the commercial tenant, clients as the landlords will need to contribute to renovation costs which will take place roughly every 10 years.  The apartments will then effectively be like new increasing the value of the property and allowing us to continue to rent the property for an appropriate amount to pay the rental guarantees.

How do I book my weeks stay in my property and any exchange stays?

Once you are an owner you will receive an owner’s number and will be able to book your stays and exchange your weeks on the dedicated owner’s internet page.  You will be sent a form every year and will be asked to select which weeks you would like to book for personal usage.  The week commences on Saturdays at 5pm and finishes at 10am the following Saturday. Up to a certain date which is clarified each year - you are assured to stay in your own apartment, after this time P&V will give you an alternative equivalent property in the same residence and you will not be subject to occupation tax. The occupation tax is a local tax which varies in amount from one residence to another. The occupation tax is 82 euros and is payable only when you make an exchange.

Who are my points of contact once I take over full ownership of the property?

You will have all contact numbers and email addresses for the Property Management Department which covers any questions regarding your property, rent, holidays etc

Can I meet someone from Pierre & Vacances to discuss the investment opportunities?

Yes – we have consultants in the UK (based in London), in Ireland (based in Dublin) and in Russia (based in Moscow) and also travel regularly to other countries – Netherlands, UAE, South Africa etc so are pleased to meet clients in person whenever possible.  Otherwise we are pleased to contact you by telephone, email or Skype.

Please can you give me an outline of the upfront costs that apply for a leaseback investment?

The main upfront cost for a leaseback is the notary fee (which includes government taxes, stamp duty and mortgage registration tax when applicable) which for a new build property is 3.5 - 4% and for renovation property is 6-8%.

What are the annual costs as an owner?

Your only annual cost is to pay the tax fonciere (council tax) which varies region to region – which is only payable from year 3 for new build properties.  You will also need to file a French tax return (€300 a year) though P&V pay for your first year.

What are the charges in relation to my apartment that P&V pay for?

> the co-ownership charges which relate to the common parts of the building in which your apartment is located.

> the maintenance charges which consist of (insurance, cleaning, maintenance, technical intervention...)

> the private energy charges and utilities

> the fiscal charges which are the taxes – P&V will pay most of them with the exception of taxe foncière (see above)

P&V aren’t liable to pay for extraordinary charges which relate to major repair works which are listed in article 606 of the French Civil Code. This is not specific to this property or this management company, this concerns all similar residences as it is part of French law.

How do I receive my rental income and when and how is this paid?

Rent is paid in the majority of cases annually in arrears to the account you select at reservation – which is usually the French account for your mortgage repayments. In some cases such as Center Parcs the rent is paid quarterly in arrears. For summer properties this is paid at the end of October and for ski properties at the end of April.  Your first rental income is based on a pro rata payment calculated on a monthly basis from ownership date until payment date.

What other advantages do I have as a P&V owner?

As a P&V owner you will benefit from an owner’s discount from 15-20% on all properties.  You will have the option to join the owner’s exchange network where you are able to swap week(s) of usage in your own property for other equivalent properties in the Group in the same season.  An owner of an apartment in Val d’Isere with 3 weeks usage could for example to choose to use 1 week in La Plagne, 1 week in Cannes and 1 week in Biarritz.

In your status as owner, you will have other advantages when using your weeks of occupation such as preferential tariffs such as Clubs Enfants, competitions and certain sports courses.  You will benefit from specific formulae when staying at the following villages: Cap Esterel, Pont Royal, Port Bourgenay and Port du Crouesty.  

How much money do I need in order to be able to buy a leaseback property?

With 100% French mortgages readily available - you can invest in a leaseback for as little as €5,000.  P&V have properties that start from €75,000 and go up to €1 million.   

Why invest in a leaseback with P&V?

P&V are the most experienced, most successful leaseback and tourism company in the industry.  P&V are not just the developers but the management company as well so investors know they have a vested interest in not just the quality of the build and the location of the property but in the on-going management and re-sale of the properties.

How popular have your leaseback properties been with International buyers?

Our sales to International buyers have increased every year since we opened our UK office in 2003 and continue to increase in popularity as the French property market continues to show stable, good growth, the French tourism market continues to be the biggest in the world and French finance continues to offer excellent opportunities.

Leaseback rents are guaranteed – though how are they guaranteed?

Leaseback guarantees are only as good as the company making them so there are several factors to consider

> Experience - P&V have been in business for 43 years and have successfully navigated, grown and successfully paid rental guarantees through this time including during several recessions

> Expertise – P&V have over 7.5 million tourist clients staying in their diverse range of properties across France and have the size and financial strength to deliver guaranteed returns through conservative and astute management.

> Financial stability – P&V are a conservative, blue chip company with a very healthy business model, extremely low levels of debt and good cash reserves.