Safeguard the Equity in Off-Plan Property
For both investors and those buying their own home
The Cenoption product can be utilised for Off-Plan purchases provided that a RICS valuation is submitted with the application and that there is acceptable buildings insurance in place from completion as would normally be the case.
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 & broker fee paid. The Cenoption is now in place.
You can exercise the Cenoption to sell the property to the Option provider 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 imediate exchange and 10% paid to you within 28 days. There are no agents fees to pay (as would be the case normally) merely your own standard conveyance costs.
In structure and implementation, the product is otherwise the same as that placed upon an existing property, however there may be unique advantages to use a Cenoption with Off-Plan Puchases and investments.
Consider scenarios where, for example, completion is expected in three plus years, or where financing may be problematic or future interest rates unknown. Perhaps a small deposit may be leveraged against the property during the build period and/or a significant discount attained. Perhaps the flipping of one property may help pay for another. Perhaps the property is overseas in a rising market, or perhaps it’s a primary residence abroad or in the UK, where you do not wish to gamble with future market forces.
Whatever the scenario, we feel sure that the more creative among you will find innumerable ways to benefit from the use of a Cenoption to gain profit and comfort you yourself, your family. your home and your investments when buying Off-Plan.
*All prices exclude VAT unless otherwise stated*
