French developer introduces more leasing flexibility for Alpine buyers

The growing popularity of year round short breaks and long weekends in the French Alps has prompted the region’s biggest developer of residential properties to introduce greater flexibility in the way the leaseback apartments it sells are let to maximise rental incomes.

Traditionally MGM has offered holiday home buyers, who also seek a guaranteed long term investment, a variety of leaseback options. They include a guaranteed rental income linked to weekly lettings in the ski season in high altitude resorts and throughout the year in locations popular during the summer months.

‘This arrangement has worked well for many years but we recognise that, with today’s easy accessibility of resorts like Samoëns, Les Carroz d’Araches, Châtel and others within the Grand Massif area which are more accessible thanks to the ready availability of budget airline flights to Geneva there is growing demand for short break accommodation in our résidences de tourisme. This is often during off peak periods when apartments might otherwise be empty,’ said Richard Deans who is based in MGM’s London office.

‘Therefore the MGM Group’s specialist in house management and lettings company, CGH (La Compagnie de Gestion Hoteliere) has announced a new flexible lettings policy which helps to ensure that our clients maximise their returns on the apartments they buy from us,’ he added.

Owners of leaseback apartments from MGM have private use of their property for two, three, four or six weeks each year, depending on the terms agreed at the time of their purchase, but the firm has now built greater flexibility into this arrangement also.

Meanwhile France is still popular with British buyers. Data from French bank BNP Paribas shows that the UK still accounts for around a fifth of all the house purchases by foreign buyers in France.

British buyers dominate the purchasing tables in many regions, including Brittany and Normandy, but are also important buyers in areas such as Aquitaine and Midi Pyrenees. Italian buyers dominate in the Parisian region and in Provence Alpes Cote D’Azur, according to the data.

Tim Harvey, managing director of specialist euro mortgage brokers Offshoreonline, said that the French market has retained its appeal for many British buyers, partly due to the fact that there has not been any shortage of choice or availability of euro mortgage finance.

‘Whilst in the UK we have seen lenders retreat from the market, in France, lenders have gone in the opposite direction, launching new products and cutting interest rates. Variable rate loans are currently available at 2.15%, whilst 10 year fixed rate mortgage rates are on offer from 2.80% with some lenders,’ he explained.

‘For the worldwide expat who may well have more choice when it comes to choosing where they would like to buy a second home, France has much to offer. Many who previously would have bought in Spain are now looking at France, as property values there have generally performed well at a time when values have crashed in Spain, for example,’ he added.