Lease

Leaseback Rules on 70% Changed

One of the restrictions with French Leaseback status on a site has been that the development must have at least 70% of the properties in a lease to retain the French government ‘leaseback status”. If my French serves me, it seems  that this has changed in Mar 2015 and has been reduced to 55%. However, there is a stipulation that  the residence must have operated for at least 9 years.

This is some good news as the French Ministry of Tourism seem to have recognised issues with the law relating to these ‘Résidences du tourisme’. The law is less restrictive now.

A derogation, sustainable lease obligation of at least 70% of local furnished home is set at 55% for:
-The tourist residences operated for over nine years, whose ranking has expired on the effective date of Decree No 2015-298 of 16 March 2015 amending the conditions for classification of tourist homes; -the unclassified establishments meeting the specifications laid down in section D. 321-1 , operated for over nine years.

And from the decree itself:

A titre dérogatoire, l’obligation durable de location d’au moins 70 % des locaux d’habitation meublés est fixée à 55 % pour :
-les résidences de tourisme exploitées depuis plus de neuf ans, dont le classement est arrivé à échéance à la date d’entrée en vigueur du décret n° 2015-298 du 16 mars 2015 modifiant les conditions de classement des résidences de tourisme ;
-les établissements non classés répondant aux caractéristiques fixées à l’article D. 321-1, exploités depuis plus de neuf ans.

Find the related French government details on Article D321-2 of the French Tourist Code on Legifrance.gouv.fr

also:

JORF n°0065 du 18 mars 2015 page 5032 texte n° 37

DECRET Décret n° 2015-298 du 16 mars 2015 modifiant les conditions de classement des résidences de tourisme

NOR: EINI1413630D

ELI: http://legifrance.gouv.fr/eli/decret/2015/3/16/EINI1413630D/jo/texte

ELI: http://legifrance.gouv.fr/eli/decret/2015/3/16/2015-298/jo/texte

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