THE DEAL:

• Buy a property and save the French VAT
  • (The developer pays the VAT during construction and then reclaims the amount from the French government on behalf of the client upon completion)
• You put down only a 10% deposit on the ex-VAT price

Building period (max 2 years):

• Interest on the mortgage loan during this period is calculated at the handover and added to the mortgage loan to be repaid over the next 23 years
• We reimburse your life insurance premiums during this period
• You receive a 7% return on your DEPOSIT
  • From Act de Vente until the handover of the property.
  • Paid to owner within 120 days of the handover, by banker's draft

For the next 23 years:

• You get a 7% rental income fixed on 100% of the ex-VAT price of the property
  
• All you have to pay are your mortgage payments on 90% of the ex-VAT price
• Plus life insurance premiums for 23 years

We cover the usual costs:

• Maintenance fees
  
• Property insurance
  
• Council Tax -
  • The client will need to forward the bill to Domaine de Lavagnac, which will then be paid within 10 days
• We will pay a maximum of €1000 annually to cover any shortfall
  • As long as your are a “normal” client and qualify for a 5% fixed rate, capital and interest, repayment mortgage over 25 years, with a maximum life insurance premium rate of 0.3%
  • If your circumstances require you to have a shorter term  loan or higher life insurance premium rates, then you will be required to cover any shortfall in excess of €1000 per annum

You benefit from:

• Benefits in kind  (see contract for details)
  
• 4 weeks use of your property, plus (during those 4 weeks) :
  
  • Golf - free for the owner, and 50% concession for up to three people staying with the owner
    
  • Free use of tennis courts - subject to availability
  • Free access to the Luxury Spa - charges to be confirmed for treatments
    

After 23 years, the property remains yours "debt unencumbered".