The buyer of the French leaseback property signed a leaseback contract with a operating company. However only the tenant wrote the lease contract. The waiver to an eviction indemnity could only appear as a decisive element of the deal. Most importantly, the buyer of the French leaseback would (or might) not have signed the contract. If their attention had not been attracted by this financial interest, they might not have contracted.

4. The owner of a French leaseback wants to sale his
property
What is the process for a French Lease-back Resale ?
Two options

5. Selling with the lease-back property in France with the
commercial lease means the price depends from the
rent.
The second market for French lease-back is based on
the return in % of the price that the yearly rent
guarantees to the buyer.
The market is usually between 3,5% and 5% of the yearly
rent.
Location comes only second and size of the real estate
third.
The buyer will only check the yearly return (Yield) and

6. If you can resale the French leaseback real estate without
a lease, the price will be around the usual market value in
this town or city.
The only trouble is to get rid of the lease.
Two options again. First, the court has cancelled the
lease, because of unpaid rent for instance. The second
option you terminate the commercial lease with the
tenant. However, it comes with damages if the lessee is
terminating the lease.

9. You can negotiate through your lawyer with
the operator (lessee/tenant). Usually, the
owner and the operating company signed a
settlement during the expertal proceedings.
A judge appoints a judicial expert (working for
the court but paid by the parties). The expert
studies the lease and the accounting of the
lessee operating the hotel (residence of
tourism). The expert chose next one or
several methods to calculate damages, called
indemnité d’éviction (eviction damages).

12. The lessor (owner) has two one bedroom in the French
leaseback property. He wants his two apartments back
and terminate the lease. He gives notice (congé) within the
notice period stated in the contract. In this case, the
court’s expert chose to calculate the eviction indemnity
using the margin calculation method. The commercial
lease covers two one bedroom. The operator subleases to
tourist and provides services to the final customer (like
hotel services). The operating company manages a lot of
apartment in this building. The question is : will the this
French lease-back resale hurt his business ? The operator
will continue to able to run his business of subleasing and
offering various services to tourists. Damages should not
take into account a global loss, but only the lost income of

16. It would be for the tenant company only a partial loss
regarding all the apartments she manages in the French
leaseback building. The eviction indemnity must be
calculated according to the method of calculating the
margin, according to the expert appointed by the court.
The gross margin amounts is 380,375 euros. Considering
the expenses for the operating company (reception,
security and cleaning …), the coefficient applied to the
gross margin is 4, which gives an eviction compensation of
€ 1,521,500. It is not disputed that the share repaid to the
lessor in relation to all the rents paid out is 1.40% so that
the eviction indemnity(damages) should be to EUR 21,301,
following the expert. The occupancy allowance (indemnité

19. It was at April 1, 2009 of 434 euros monthly
for the two studios and the tenant company
does not dispute that this allowance must then
be revised annually in the same way as the
rent paid according to the variation of the
index INSEE of construction on April 1 of each
year so that it was on April 1, 2010 of 429
euros, on April 1, 2011 of 437 euros and on
April 1, 2012 of 467 euros, the same variation
must then apply annually until the complete
release of the premises. Please, feel free to ask

24. https://frenchrealestatelaw-traesch.fr/leaseback-indemnite-
eviction