Passionate about the mountains and building in equal measure, MGM offers you a choice of high-quality residences in an outright purchase set-up. Buying an outright purchase property enables you, as the owner, to manage your property and personalise it freely. Our experts reveal all about co-ownership charges and explain how second home owners can recover them.
What are the co-ownership charges for an MGM residence?
Specialising in mountain property construction, MGM imagines and designs audacious developments at the heart of the Alps’ most beautiful resorts. Harmoniously integrated into their environment, our residences give you the chance to buy an upmarket main or second home.
Whether you want to buy a main home or invest in a second home, with an outright purchase set-up, you own a lot that includes:
- Private property: your home;
- Collective property: the communal areas of the residence.
In order to cover the cost of maintenance and equipment for the collective areas, each owner must pay annual co-ownership charges; these consist of general communal charges and special charges.
General communal charges
At your MGM residence, the general charges are spent on the conservation, maintenance and administration of the communal areas.
The general charges also include all work done in the collective areas of the co-ownership: maintenance of entrance halls, renovation of communal areas, updating pipes to meet current standards, etc.
Special charges, or charges for communal equipment and collective services
The special charges cover all the expenses connected with the functioning of the building’s communal areas and the co-ownership’s collective services:
- collective heating;
- intercom ;
- collective antenna systems;
- water and electricity in some residences.
Each homeowner’s share of the special charges is established by a co-owners’ vote at a general meeting, or is directly set out in the co-ownership rules.
Second home: how to recover co-ownership charges from tenants on a yearly basis
Whether you are letting out your luxury mountain home on a yearly or seasonal basis, the law allows you to claim back a portion of the charges from the tenant: these are known as “recoverable charges”.
Monthly fee or upfront payment?
Tenants may be asked to pay occupancy charges:
- By monthly fee: this flat fee is revisable each year under the same conditions as the main rent. This option only applies to furnished rentals.
- By upfront payment: in this case, the amount charged will be regularised annually:
- if the upfront payment made by the tenant does not cover the amount actually spent, the tenant must then pay the balance;
- if the upfront payment has exceeded the amount actually spent (which is very rare), you return the excess payment to the tenant.
What are the main recoverable occupancy charges?
Decree number 87-713 of 26 August 1987 sets out a list of all recoverable co-ownership charges; only the charges listed in this degree can be claimed back from the tenant.
- Cold water, hot water and collective heating of private spaces and communal areas;
- Routine maintenance and minor repair expenses (leaks, joint replacement, heating, flue, etc.);
- Individual installation of heating and hot water in private areas;
- Operating and routine maintenance charges for the interior and exterior parts of the building;
- Passenger lift and goods lift;
- Personnel and hygiene costs for waste disposal, cost of disinfection products and consumables (bin bags, paper, etc.);
- Street-sweeping tax and waste disposal tax or fee.
With MGM property developments, you benefit from an ideal location at the heart of the Alps. Our luxury outright purchase residences give you access to a main or second home in an incomparable setting.
Our upmarket co-ownership offer apartments of various surface areas in exceptional natural environments – whether in the Alps’ most beautiful ski resorts or near Lake Annecy (department 74).
Investing in an MGM residence means adopting a privileged lifestyle, as well as benefiting from a number of advantages. Our experts can assist you and help with at every stage of your property purchase.
We can also provide advice to help you prepare a preliminary contract or understand the definition of a commercial lease. With over 50 years’ experience in mountain property development and construction, MGM is the ideal partner for your mountain resort property purchase.