Don't be snow blind: Alpine homes have a summer value

French resorts are diversifying into the warmer months, allowing for greater rental income, reports Julian Knight

Hear anyone talk about the French Alps and your first thoughts are probably of the white stuff, snow, neige. Skiing and snowboarding, vin chaud and après ski is where it's at in the French Alps, yes?

No, not any more. According to the estate agent Savills, there has been a 26 per cent fall in Alpine ski tourism since 2007, as result, no doubt, of double dip recessions and financial crises. The region has had to adapt to survive – no longer reliant on a glut of tourists in a few short, not necessarily snow-bound, winter months to make their money for the year.

The French Alps is now a year-round destination and this is making its property – always a favourite with British buyers – potentially more lucrative. "The resorts used to be ghost towns in the summer, but now they buzz with holidaymakers. This provides the chance of higher rental returns," says Charles Weston Baker, the head of international residential sales at Savills.

With warmer summer months than the UK, but with lower rainfall and a cooling breeze, hiking, the most traditional of Alpine summer pastimes, has been joined by mountain biking and even the anglophile golf. And, once you add more extreme pursuits such as canyoning, paragliding and abseiling, it's easy to see why the Alps are beginning to carve a tourism niche beyond the snow.

"The Alps seems to appeal more to a younger demographic than in the past and is seen as a place for the family. That's one of the great joys of owning property, lending it to friends and family," adds Mr Weston Baker.

Property prices are still pegged to the prestige of ski resorts. Courchevel, Chamonix and the like, command some of the highest prices as do resorts over the Swiss border. Back in France, more affordable property locations – but still well established ski areas – include Morzine-Avoriaz, Meribel, Les Arc and Valmorel.

Located in Savoie, a couple of hours from Geneva airport, the village of Valmorel is next to the landmark Col de Madeleine and on a clear day Mount Blanc is visible. Club Med, one of France's biggest tourism companies, is selling 19 ski-in, ski-out chalet-apartments near to its all-inclusive resort.

The properties, which can be seen at, start at ¤556,000 (£440,000) for two beds and go up to ¤1.3m for four beds. When in residence, owners can use the club facilities, including restaurants, bars, gym, spa and pool. It's a walkers heaven, with more than 150km of footpaths set in nearly 9,000 acres of protected countryside. Owners, like paying guests, even have the use of an onsite butler to cook breakfast and make the beds as part of the package.

The properties are available on a leaseback basis, so for the first 11 years of ownership the properties are let out by Club Med to high-end guests. In return, buyers receive a guaranteed rental return of 3 per cent and three weeks use a year.

"The idea is that owners can enjoy the privacy of their villa and dip into Club Med's all-inclusive facilities, which is ideal for families. This all-inclusive deal is a unique offering of this development," says Sylvie Ernoult, Club Med's head of villa marketing.

Leaseback has received some bad press and understandably so. Buyers have found to their cost that the guarantees are only worthwhile if the developer can follow through with its promises. After the financial crisis, large number of developers either went bust or were unable to deliver their guarantees. This wasn't just seen in Eastern Europe or less developed countries, France suffered its fair share of developer failure.

"There were problems with leaseback and people need to be alive to the risks that the guarantee is only a guarantee if the firm is strong enough to follow it through," says John Busby, a director at French Private Finance who specialises in French properties.

Big, it seems, is not only beautiful but necessary when considering buying on a leaseback basis. "Go with the big providers. The Club Med's and Pierre Vacances (P&V) of this world are massive, strong companies which should be well placed to honour their promises. Overall, people like leaseback in the Alps because it gives them the usage while the rental returns allow the investment to pay for itself," Mr Weston Baker adds.

At Club Med, for instance, the chalets are maintained for owners and materials are top drawer – essential in the often harsh Alpine environment.

There are also freehold properties available in the Alps – not tied into a leaseback arrangement – but these come at a premium as developers cannot claim the tax advantages that come with building property designed to be let out.

Savills, for instance, has just started marketing a six-apartment development in Meribel, with beautiful views over the valley and La Chapelle Notre Dame des Neiges. Ranging from two to four-beds, apartments cost from ¤720,000. P&V has a range of properties at a heady 2,000m altitude in Belle Plagne from ¤502,219, sold through

Mortgages, although subject to quite strict criteria, are readily available in France, regardless of whether the property is bought leaseback or outright. "Mortgage rates are near record lows, with tracker products available from just 2.5 per cent and 20-year fixed rate deals at 3.75 per cent," says Mr Busby.

Generally, mortgage loan to values stand at 70 to 80 per cent. However, there is an affordability test applied to French mortgages and borrowers' total debt repayments cannot exceed a third of their income. But lenders do take account of potential rental income in their calculations.

"The best advice is to have the finance in place before you start looking. You don't want to be rejected once you have your heart set on a place. The good news is that prices are soft at the moment so serious buyers have the whip hand," Mr Busby says.

The buyers market, no doubt, is down to the euro's troubles. But buyers in France, rather than their counterparts in Spain, Italy or Greece, can be fairly sure of France's continuing place in the eurozone. British buyers have benefitted from the uncertainty because exchange rates have improved, but market jitters can strike the unwary buyer at any time.

"On average, it takes between six and eight weeks to complete a resale property purchase abroad. If you're buying off-plan this is generally elongated to 12 to 18 months. Even over just one month currency rates can change dramatically and have a real impact on the price of an overseas property," says Mark Bodega, a director at currency firm HiFX said.

One way to counter such fluctuations is to arrange a future currency contract, which allows you to buy the currency at current rates and pay after completing the purchase.

Independent Partners; request a free guide on NISAs from Hargreaves Lansdown

Arts and Entertainment
Sheridan Smith as Cilla Black and Ed Stoppard as her manager Brian Epstein
tvCilla Episode 2 review: Grit under the glamour in part two of biopic series starring Sheridan Smith
David Moyes and Louis van Gaal
Former Governor of Alaska Sarah Palin, left, with her daughter, Bristol
newsShe's 'proud' of eldest daughter, who 'punched host in the face'
New Zealand fly-half Aaron Cruden pictured in The Zookeeper's Son on a late-night drinking session
A cabin crew member photographed the devastation after one flight
Life and Style
Carol O'Brien, whose son Rob suffered many years of depression
healthOne mother's story of how London charity Maytree helped her son with his depression
Life and Style
food + drink
Arts and Entertainment
The cover of Dark Side of the Moon
musicCan 'The Endless River' carry on the tradition? See for yourself
Rob Merrick's Lobby Journalists were playing Ed Balls' Labour Party MPs. The match is an annual event which takes place ahead of the opening of the party conference
newsRob Merrick insistes 'Ed will be hurting much more than me'
A new app has been launched that enables people to have a cuddle from a stranger
voicesMaybe the new app will make it more normal to reach out to strangers
Liam Payne has attacked the media for reporting his tweet of support to Willie Robertson and the subsequent backlash from fans
peopleBut One Direction star insists he is not homophobic
Life and Style
healthFor Pure-O OCD sufferers this is a reality they live in
Life and Style
Sexual health charities have campaigned for the kits to be regulated
healthAmerican woman who did tells parents there is 'nothing to be afraid of'
Life and Style
Arts and Entertainment
The John Peel Lecture has previously been given by Pete Townshend of The Who, Billy Bragg and Charlotte Church
musicGodfather of punk will speak on 'free music in a capitalist society'
peopleAt least it's for a worthwhile cause
Shoppers in Covent Garden, London, celebrate after they were the first to buy the iPhone 6, released yesterday
Finacial products from our partners
Property search
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating

By clicking 'Search' you
are agreeing to our
Terms of Use.

ES Rentals

    iJobs Job Widget
    iJobs Money & Business

    Trainee / Experienced Recruitment Consultants

    £20000 - £25000 per annum + OTE £40,000: SThree: SThree are a global FTSE 250 ...

    Trainee Recruitment Consultant - Soho

    £20000 - £25000 per annum + OTE £40000: SThree: As a Recruitment Consultant, y...

    Trainee Recruitment Consultants - Banking & Finance

    £20000 - £25000 per annum + OTE £40,000: SThree: SThree Group have been well e...

    Quantitative Risk Manager

    Up to £80000: Saxton Leigh: My client, a large commodities broker, is looking ...

    Day In a Page

    A roller-coaster tale from the 'voice of a generation'

    Not That Kind of Girl:

    A roller-coaster tale from 'voice of a generation' Lena Dunham
    London is not bedlam or a cradle of vice. In fact it, as much as anywhere, deserves independence

    London is not bedlam or a cradle of vice

    In fact it, as much as anywhere, deserves independence
    Vivienne Westwood 'didn’t want' relationship with Malcolm McLaren

    Vivienne Westwood 'didn’t want' relationship with McLaren

    Designer 'felt pressured' into going out with Sex Pistols manager
    Jourdan Dunn: Model mother

    Model mother

    Jordan Dunn became one of the best-paid models in the world
    Apple still coolest brand – despite U2 PR disaster

    Apple still the coolest brand

    Despite PR disaster of free U2 album
    Scottish referendum: The Yes vote was the love that dared speak its name, but it was not to be

    Despite the result, this is the end of the status quo

    Boyd Tonkin on the fall-out from the Scottish referendum
    Manolo Blahnik: The high priest of heels talks flats, Englishness, and why he loves Mary Beard

    Manolo Blahnik: Flats, Englishness, and Mary Beard

    The shoe designer who has been dubbed 'the patron saint of the stiletto'
    The Beatles biographer reveals exclusive original manuscripts of some of the best pop songs ever written

    Scrambled eggs and LSD

    Behind The Beatles' lyrics - thanks to Hunter Davis's original manuscript copies
    'Normcore' fashion: Blending in is the new standing out in latest catwalk non-trend

    'Normcore': Blending in is the new standing out

    Just when fashion was in grave danger of running out of trends, it only went and invented the non-trend. Rebecca Gonsalves investigates
    Dance’s new leading ladies fight back: How female vocalists are now writing their own hits

    New leading ladies of dance fight back

    How female vocalists are now writing their own hits
    Mystery of the Ground Zero wedding photo

    A shot in the dark

    Mystery of the wedding photo from Ground Zero
    His life, the universe and everything

    His life, the universe and everything

    New biography sheds light on comic genius of Douglas Adams
    Save us from small screen superheroes

    Save us from small screen superheroes

    Shows like Agents of S.H.I.E.L.D are little more than marketing tools
    Reach for the skies

    Reach for the skies

    From pools to football pitches, rooftop living is looking up
    These are the 12 best hotel spas in the UK

    12 best hotel spas in the UK

    Some hotels go all out on facilities; others stand out for the sheer quality of treatments