What is a gradual exit lease from the 1948 law?

Verified 01 January 2024 - Directorate for Legal and Administrative Information (Prime Minister)

The owner of a dwelling subject to the 1948 Act may decide to end this scheme and rent it at market prices, subject to certain conditions. First, the landlord (or his representative) must sign with the tenant a gradual exit lease from the 1948 act, of eight years' duration. Thereafter, the tenant and the landlord (or his representative) will be able to sign a new lease, with a rent corresponding to the market price.

The dwelling must be classified as Category II B or Category II C.

These categories include accommodation of good quality, and even of fairly good quality.

The landlord is allowed to make a proposal for a phased-out lease when the resources of the people housed exceed a certain amount.

This amount depends on the number of people housed:

General case

1 person

The resourcing amount of the person accommodated must exceed €32,811.

These resources correspond to the net taxable income that she has received during calendar year preceding the proposal.

2 people

The cumulative amount of the resources of the 2 persons accommodated must exceed €40,040.

These resources represent the total net taxable income they have received during calendar year preceding the proposal.

3 people

The cumulative amount of the resources of the 3 persons accommodated must exceed €47,271.

These resources represent the total net taxable income they have received during calendar year preceding the proposal.

4 people and more

The combined resources of the 4 persons accommodated must exceed €54,500.

This amount shall be increased by €7,229 for each additional person.

These resources represent the total net taxable income they have received during calendar year preceding the proposal.

In Île-de-France

1 person

The resourcing amount of the person accommodated must exceed €43,749.

These resources correspond to the net taxable income that she has received during calendar year preceding the proposal.

2 people

The cumulative amount of the resources of the 2 persons accommodated must exceed €53,388.

These resources represent the total net taxable income they have received during calendar year preceding the proposal.

3 people

The cumulative amount of the resources of the 3 persons accommodated must exceed €63,027.

These resources represent the total net taxable income they have received during calendar year preceding the proposal.

4 people and more

The combined resources of the 4 persons accommodated must exceed €72,667.

This amount shall be increased by €9,639 for each additional person.

These resources represent the total net taxable income they have received during calendar year preceding the proposal.

Determination of rent

The rent must be determined by reference to the prices usually charged in the neighborhood, over the last 3 years and for comparable dwellings.

FYI  

This rent will be phased in gradually. The difference between the old rent and the new rent will be spread over the entire term of the phased exit lease (8 years).

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Up to 1 million inhabitants

The landlord must rely on at least 3 rental references.

Certain references (period of construction of a building, type of dwellings...) can be obtained from the network of local observatories.

FYI  

These references must be mentioned in the proposal for a gradual exit lease to be sent to the tenant.

Agglomeration of more than one million inhabitants

The landlord must rely on a minimum of 6 rental references.

Certain references (period of construction of a building, type of dwellings...) can be obtained from the rent observatory of the Paris agglomeration (Olap) or to the network of local observatories.

FYI  

These references must be mentioned in the proposal for a gradual exit lease to be sent to the tenant.

Sending proposal by owner

In order to terminate the residential lease subject to the 1948 Act, the landlord (or his representative) must submit a proposal to the tenant to phased exit lease :

The lease proposal must include the following information:

  • Name or surname of the owner, his permanent address or registered place of business, and those of his authorized representative, if necessary
  • Effective date of the phasing-out lease and its duration (8 years)
  • Property concerned and its destination
  • The accommodation concerned and, if necessary, a list of the facilities and common areas to which the tenant has access
  • Rent amount, method of payment and annual review rule
  • Amount of security deposit, if necessary
  • Living area of the dwelling concerned
  • Reproduction in writing of article 25 and articles 28 to 33 of law 86-1290 of 23 december 1986
  • List of references used to fix the rent (at least 3 or 6 rental references, depending on the size of the agglomeration where the dwelling is located)

Tenant Response

From the receipt of the proposal for a phased exit lease, the tenant has 2 months to perform one of the following actions:

  • Inform the owner (or their representative) that the resource conditions for a phased-out lease are not being met. The tenant must then provide the necessary supporting documents.
  • Refuse the proposal of the landlord (or his representative) and, if the tenant has made at his own expense work that has substantially improved the comfort or equipment of the dwelling, request their reimbursement
  • Accept the proposal of the landlord (or his representative) and, if the tenant has made at his own expense work that has substantially improved the comfort or equipment of the dwelling, request their reimbursement

The tenant must send his answer to the landlord (or his representative):

If the tenant chooses not to reply within the 2-month period, this failure to reply shall be deemed a refusal.

Procedure according to the tenant's response

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In case of agreement

Gradual exit lease takes effect 6 months after proposal date sent by the owner (or his representative), unless there are exceptions.

The new rent does not apply immediately. The increase between the old rent and the new rent is gradual. It must be spread out by the eighth year, that is to say over eight years.

The annual review in the light ofIRL: titleContent may be applied, provided that a clause of the lease so provides.

If the tenant has requested the reimbursement of works, the amount is fixed and is reimbursed when the phased exit lease. At the request of the owner (or his representative), repayment may also be phased in during the phasing-out lease. If the debt still exists at the end of this lease, the landlord (or his representative) pays the balance to the tenant.

In case of disagreement or no response from the tenant

Within 3 months following receipt of the proposal by the tenant, the landlord (or his representative) or the tenant may enter the departmental conciliation commission. This procedure is not mandatory, the protection litigation judge can be entered directly.

The judge may be seized within 6 months of the owner's proposal.

Warning  

If the judge is not seized within 6 months of the owner's proposal, the dwelling remains subject to the 1948 law.

The judge decides on the applications of the tenant and the landlord and fixes the amount of the new rent.

The phasing-out lease is considered to be concluded under the terms and conditions set by the judge.

The new rent will not apply immediately. The increase between the old rent and the new rent is gradual. It must be spread out by the eighth year, that is to say over eight years.

The annual revision of the rent amount based on theIRL: titleContent may be applied, provided that a clause of the lease so provides.

At the end of the phased exit lease eight years old, a new lease must be concluded.

This new lease is subject to the law of 6 july 1989.

The rent is set freely by the landlord, in compliance with statutory provisions.

Warning  

The landlord (or his representative) will not be able to grant leave to the tenant who, at the end of the 8-year lease, is over 65 years of age or is disabled. Nor will he be able to increase the rent when the lease is renewed.

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