FAQ | The Buying Process

Purchasing an apartment

The apartments will be purchased in the owner’s name and will be registered as such in the land registry. In addition, all of the buyers will be entitled to use the central buildings, infrastructure and facilities. This communal property will be leased to Pierce & Elliott Vacances which will handle the operation of these facilities. Pierce & Elliott Vacances is specialised in the management and the lease of resorts such as Les Verts Sapins. This means that special attention will be paid to the owners’ and tenants’ needs and preferences in a professional manner. The owners will receive the return on their investment on a quarterly basis.

Purchase procedure

You will receive a reservation contract that you must sign and return. You will then transfer 5% of the purchase price to the secured bank account of the civil-law notary. The notary will then draw up the final deed in due course which you will then sign. You will periodically receive an invoice for the payment of a construction phase at the time a pre-specified phase of construction has been completed. If you are the first owner, the purchase of an apartment in Les Verts Sapins is not subject to additional fees payable by the buyer, so this entails no extra costs for you. You will only be expected to bear the costs related to any mortgage you take out for the purchase.

Taxes

Since the apartment is located in France, you will be required to pay taxes in France on the income earned on your apartment. The double taxation convention ensures that you will not have to pay taxes again on these amounts in Great Britain. The income over which taxes must be paid are the proceeds from rentals less costs. These costs include the interest charges for a loan, depreciation, costs incurred for management services, as well as the travel costs you incur for an inspection visit to your apartment. In most cases, the maximum income you earn, from a fiscal point of view, will be minimal or nil which will mean
that the taxes you will have to pay will also be minimal

VAT

All of the amounts specified in the price list are exclusive of 19.6% vat. This vat has to be paid initially, but will be reclaimed. Normally the French tax authorities transfer the amount of the vat within 3 to 6 months after completion of the project. If chosen for a vat reclaim the owner is obligated to make the apartment available to the operator through a 9 year lease agreement

Financing

It is possible to arrange for financing by taking out a French mortgage. In principle, this financing is possible for up to 80% of the purchase price including vat, depending on your income. The types of financing offered are in the form of an annuity or interest-only mortgage. In a number of cases, a life insurance policy may also be required.