Britons who own French holiday homes could be forced to pay up to £170,000 and have retirements ruined due to legal U-turn
Scores of Britons who own French holiday homes face losing hundreds of thousands of pounds and ruined retirements after a legal U-turn.
Scores of Britons who own French holiday homes face losing hundreds of thousands of pounds and ruined retirements after a legal U-turn.
They could be forced to pay up to £170,000 on ski chalets or Riviera villas bought decades ago under a leasing scheme promoted by the French government.
Shocked owners say they have been stitched up by huge fees from the letting agency looking after their properties – levies they were told they would not have to pay.
Terry Beavis, 56, said his retirement dream of spending winters in his Alpine holiday home has been dashed after he was sent a £115,000 bill.
Its astonishing they can do this, he said. It seemed a safe investment because it was encouraged by the French government.
Terry Bevis pictured with his wife Jo and their three sons Alex, Max and Sam. Mr Beavis, 56, said his retirement dream of spending winters in his Alpine holiday home has been dashed after he was sent a £115,000 bill
Mr Beavis, from Epsom, Surrey, bought his property in Les Arcs (pictured) in the early 2000s for 200,000 euros. It is now estimated to be worth double that
I spent 20 years paying for it and doing all the right things and right at the end I get completely stitched up.
The father of three, from Epsom, Surrey, bought his property in Les Arcs in the early 2000s for 200,000 euros. It is now estimated to be worth double that.
Mr Beavis, who retired from his career in IT last year, taught his wife Jo and their three sons Alex, 13, Max, five, and Sam, ten, to ski in the resort. Under the scheme, buyers leased their property to a French agent, which then let it out to holidaymakers.
The owner would have use of it for a few weeks a year under agency management. It was marketed as a hassle free investment, usually guaranteeing the owner a share of the rental income, which could help them pay off the mortgage.
Buyers of new-builds were also exempt from the 20 per cent VAT on the purchase if they remained in the scheme for 20 years. Thousands signed up, often with a view to use the properties as holiday homes before later taking full ownership.
Others planned to sell them after two decades to pay for retirement, mortgages back home or their childrens education.
Holidaymakers in Antibes on the French Riviera. Brits could be forced to pay up to £170,000 on ski chalets or Riviera villas bought decades ago under a leasing scheme promoted by the French government
But many who leased properties to Pierre et Vacances (P&V), Frances leading holiday let company, have been told to pay eviction compensation for terminating the contract at the end of the lease. Although this is allowed under French law, owners say the firm at the point of sale promised not to charge it and in many cases restated this later.
P&V has claimed a new court ruling means such promises are no longer valid. Lawyers for the owners argue the ruling does not apply in this case.
Kristell Thornton, who runs an online campaign, said the buyers invested in good faith in a scheme they trusted because it was promoted by the French government, adding: To change the rules now is disgraceful.
Max Berger from Stand-Law, representing some Britons facing charges in Les Arcs, said: Many owners feel trapped and betrayed by P&V. They want their properties back and feel the company is acting in bad faith.
P&V said: The rules applied by Pierre & Vacances comply with the French Commercial Code.
