Chris, the VAT rebate is depreciated over a 20 year period, since 2006 the unexpired portion of the rebate is available to a subsequent purchaser who continues with the lease agreement. A buyer for a second hand leaseback property will make that choice for the same reasons that attract initial buyers, i.e. that they have a hassle free investment which almost certainly won't experience the fluctuations in value of a traditional holiday home or buy-to-let property. I was being advised a couple of years ago to invest in a buy-to-let apartment in the north of England. Some of these are now being sold at discounts of up to 40% (yesterdays Daily Telegraph) by investors desperate to cut their losses. Similar experiences are occurring in Spain and soon will in Eastern Europe, independent of the crashing market in the States or that grinding to a halt in the UK. Leaseback in certainly not one for someone hoping to make a fast buck from an over hyped property market but it should never have been so and the media have their hands deep in the blood by encouraging the fast buck mentality and exploiting the greed that's within us all. Property is a long term investment and sure lots of people have made money but that shouldn't blind anyone to the risks and in my admittedly inexpert view the property bubble is deflating fast but people will still want to have holidays in nice locations.