How the Cenoption Works
A quick and simple procedure
It couldn’t be simpler. At no cost, upon receiving details of your currently owned or intended property (whether Off-Plan, Buy To Let or Owner Occupied), the providers will conduct a FREE valuation. This will establish the current market value against which the Option may be placed.
The Option value will be the agreed current value NOT the purchase price.
If you wish to proceed, contracts will be issued and a payment of 2.6% of valuation (for UK properties) plus VAT & the broker fee paid. The Cenoption is now in place . (There is a charge for dispatch of Documents via DHL of £23.00)
You can exercise the Cenoption to sell the property to the Option Providers at any point between three and ten years from taking out the option.
If the Option is exercised, the providers will be contractually obliged to purchase your property at the pre-agreed Option Price, with 10% of the property’s agreed value in your solicitor’s bank account within 28 days. There are no agents fees to pay at time of sale (as would be the case normally) merely your own standard conveyance costs.
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Consider this ....
A typical scenario could be that you are going to move into a new property. The property has been valued at £100,000. You have managed to purchase the property for £92,000. You ask The Option providers to check the value of the property and they agree that the £100,000 value is correct. You purchase an option agreement at 2.6% of the Valuation price, in other words £2,600 + VAT and the Brokerage Fee of £300 + VAT a total of £2,900 + VAT.
With the Option now in place, you can sleep safe in the knowledge that no matter what the property market does, you have the right to exercise that option any time from 3 to 10 years from taking out the option and sell the property to the option providers for the full agreed value of the property as per the agreement.
So in 3 years from taking out the option, the property market could still be flat and you want to move. So, instead of putting your house on the market, paying Estate Agents, hoping the chain does not collapse and showing hoards of people round your home, you simply exercise your option and sell it to the option provider for the full agreed value when the option was taken out. In this case, £100,000. You will receive the full, agreed value, even if the market value of the property at that time could be only £80,000.
If you’re a property investor, think of how that would positively change your investment strategy. Knowing that the profit is locked into the deal, no matter what the market does. Think of how that would have affected your business today, if you had options to Safeguard the equity in your portfolio in place 3 years ago, how much profit would you be able to realise today?
The Cenoption is available to a wide range of property providers and purchasers.
Providers
For Companies who source property deals for clients. The Cenoption will enable you to provide a service, whereby your clients are Shielded from the fluctuation in the property market. You can help your clients in 2 ways.
Work with us. We can assist you in offering the service as part of your package, or simply inform your clients that the Option is available and provide details of the service.
Whichever way you want to help your client, we are here to help you…
Purchasers
The Cenoption is available to anyone purchasing a residential property, it is not available on commercial property as yet. The property you want to Shield the equity on can be in the UK and abroad.
The Option is available to Current Home Owners, First Time Buyers and Property Investors. We can provide Options on Off-Plan as well as currently built property.
Apply Now to get the process started or register with us to be kept informed of the latest news and developments.
*All prices exclude VAT unless otherwise stated*
