L E I S U R E & L A N D
F r a n c e
To buy and upgrade a campsite which will produce a “living”/income requires a minimum capital of 320,000€ (£200,000).
In addition a comfortable house on site will add approximately 160,000€ (£100,000) to the budget. We therefore recommend that a potential purchaser has at least 320,000€ - 400,000€ (£200-250,000) capital and is prepared to borrow to buy an established business.
Obtaining finance for the purchase of a campsite depends on two things:
The declared turnover of the business, and length of time trading.
The previous business experience of the buyer.
Each site is different and must be studied individually, but the main problem is always the turnover. As with most cash businesses, the declared figures are rarely true. Although the banks know this they will only lend against a declared, positive track-record.
If the buyer is a professional in tourism, and/or has a background in business, marketing, speaks the language, etc., it is often possible to negotiate better terms for finance. Unless a site has exceptional possibilities, we advise against a loan in excess of 50% of the purchase price – the purchase price to include legal fees and immediate/essential investments.
Commercial leases in France are granted for 9 years, with 3 yearly reviews. The reviews are index-linked, unless there have been changes to the property. The lease is automatically renewed after 9 years providing the tenant has behaved and paid on time. The rent is reviewed at market price on the 9 year review, this can involve a court to decide a faire amount.
If the landlord wishes to terminate a lease, notice of at least 6 months has to be given and the tenant is reimbursed the value of the goodwill of his business.
Our website has a wide range of sites in many areas of France. To protect our French colleagues we regret that we give out further information by phone or mail. We are able to discus and advise on the phone, but the next stage is a trip to France. Our aim is to ensure that a client buys a suitable property, within their budget, and has the resources and technical support available to guarantee the success of the project.
It is not just the purchase price that is important, it is the overall package that Leisure & Land negotiate on behalf of the buyer that will ensure the success of your project.
Grosvenor House, 1 High Street, Edgware, Middx HA8 7TA - T 020 8952 5152 F 020 8951 5156 / 6, ave Verdun, 34120 Pézenas France
T (33) 04 67 90 27 26 F (33) 04 67 90 36 82 E email@example.com / firstname.lastname@example.org www.leisureandland.com