With most owners only using their properties for just a few weeks each year and the demand for accommodation ever increasing, the French government introduced a scheme to entice owners of new properties into renting them out when not in use.

The scheme known as Residence de Tourisme in France, which we term as Leaseback has been running for over 20 years and has proved to be very popular amongst purchasers of holiday homes. MGM has already completed many Residences in the Alps and Cote d’Azur and have several more on offer. Most of MGM’s latest developments have 4 star status (The highest possible classification) and offer some of the finest accommodation in their respective resorts.

The MGM residences are built to the highest standards and most of them are managed by CGH, a subsidiary of MGM acting as managing agent. Some MGM residences are not managed by MGM but by another management compagny (Pierre & Vacances, Lagrange, or VVF etc).

If you think that you would only be using your property for 6 weeks or less each year Leaseback may be an option worth considering.

1.) Maintenance of the property:

When the lease has expired the property will be returned to the owner in perfect condition.

2.) Duration of the lease:

11 years generally.

3.) Service charges:

Generally, the service charges are fixed for the entire term of the lease. They amount 25 Euros/sqm/year. (In some locations, they may vary in line with inflation, please ask us for details).

4.) Arranging the occupation:

Every year you will be sent out a booking form in order to select your weeks for coming season. The forms must be returned by the end of September for the winter season and by the end of February for the summer season.

5.) Facilities:

Most MGM Residences feature facilities such as pools, gyms, health suites, steam rooms etc. The access to the pool is always free of charge whereas the other facilities are not. A "pay as you go" operating system is offered.


Throughout the 11-year lease period, the management compagny will run the project as a hotel of self--contained apartments. Because the management compagny has to provide guaranteed incomes to most purchasers within a leaseback development, it is essential that all the properties remain rented for the majority of each season.

Why is there a discount offered on the purchase price?
The discount stems from tax breaks given to developers by the government to encourage them to build "Residence de Tourisme" projects. This is then passed down to purchasers as an incentive to enter into the scheme.

What happens at the end of the 11-year lease ?
As the freehold owner you can choose to sell, use or rent out your property whenever you wish. Alternatively you can renew the lease. With the latter option, the terms of the lease will be discussed (duration, weeks of use, rental income, service charges …).

Does the Leaseback scheme work in the same way as time-share?
With time-share all you are purchasing are periods of time, which you can use within a given number of locations over a set term. Once the term has expired you own nothing.

Under Leaseback you are the freehold owner of the property from day one and all you have done is entered into an 11-year lease.

Who pays the bills during the 11 years?
The management compagny pays for the upkeep and maintenance of your apartment along with all the utility bills. You would still have to pay the set amount of annual service charges and the "Taxe foncière".

Will I get the use of my own apartment during my allocated weeks?
This will happen as long as you book on time, otherwise it will be an equivalent property.

What happens if I need to sell before the end of the 11-year term?
As you are the freehold owner you can sell whenever you choose, but you would be selling the property with whatever period is remaining of the lease. The term remaining on the lease would have to be taken into account in the selling price.

If I take the lease with rental income, is it guaranteed, and when is it paid?
The rental income is guaranteed throughout the 11 year lease and is paid twice a year in arrears of the season, usually in April and October.

If I could buy the same property outright, couldn’t I achieve a higher return than the amount given under Residence de Tourisme?
In most locations it would be relatively easy to achieve an annual income of around 8 %, but a managing agent would take 25% and you would be liable for all your bills, insurance, local taxes and upkeep.