Do you sell property?
Now you can Safeguard the equity in your clients investments and take the fear from market fluctuations!
If you've never heard of a Cenoption then you are in for a treat. www.equitybase.co.uk in association with Centrila offer this revolutionary new product allowing you to safeguard the equity in any property you or your client owns, or is about to purchase.
NOW YOU CAN SAFEGUARD THE EQUITY IN YOUR PROPERTY DEALS YOUR CLIENTS WILL LOVE YOU FOREVER
When an individual purchases a property they now have the opportunity to put in place what is called a Cenoption, which provides the client with the "Option" to sell it to the Option Provider for the "VALUE" of the property when the Option was taken out, not the purchase price.
The Option can be exercised any time between 3-10 years from the Cenoption being taken out.
An example
Your client purchases a property from you BMV at £70.000. you have a RICS Val at £100,000.
Your client can take out the option on £100,000 which will cost them 2.6% of the valuation price in this case £2,600. + Brokerage fee of £300 + £23 for secure transfer of documentation through DHL. This would be all part of your clients acquisition costs.
*All prices quoted exclude VAT at the current rate*
2 ways for your clients to pay
The Cenoption can either be made by one payment of 2.6% of the agreed valuation figure, or alternatively three stage payments of 1% spread over 2 years. If your client decides to stage the payments it means that they have initially secured the incredible benefits of the Cenoption provides and at the same time able to cancel the contract if property prices increase dramatically within the next 2 years.
Providing your client total peace of mind in a volatile housing market, looking after any discount you have offered them.
The Ultimate WIN - WIN Situation
*All prices quoted exclude VAT at the current rate*
From a professional property investors point of view it equates to the following:
Any time between 3-10 years of taking out the option, your client is able to simply sell the property to the Option providers at the agreed valuation price. The exchange is immediate and your client will get 10% into their solicitors account within 28 days with completion happening within 90 days. This is as per usual conveyancing time-scales. In other words an immediate sale.
Your client has the option to sell, not an obligation to sell.
The Option providers can not call in the option at any time. This is a one way option, a massive advantage to your client.
Safeguarding the profit (equity) in the property from day one. Hedging Strategy.
Think of this for yourself. If you purchased a property today with the same example as above, you would KNOW from the day of taking out the Option that you have safeguarded the equity (profit) from the deal.
You KNOW that you can not be financially exposed because of market fluctuations.
You KNOW that your property and your property business would not be damaged by Negative Equity, purely because you have an Option in place. This gives professional property Investors massive piece of mind and enables them to put in place a hedging strategy for their investment.
Perfect exit route.
As you know, when a property investor wants to sell a property from their portfolio, it can be a costly and time consuming affair. With a Cenoption in place, your client simply exercises the right to sell with the Option Provider.
The usual route to selling a rented, investment property would incur excessive and mounting costs. With a Cenoption in place on the property your client would not have to go through the hassle that most property investor have to go through.
No estate agents fees - Normally a property Investor would have to put the property on the market through an estate agent who would charge anything from 2-3% of the sale price.
No void periods - When a property investor wishes to sell a property from their portfolio they would usually need to provide notice to their tenants so that the new purchaser can get a mortgage. The Mortgage Lenders require vacant possession on the property prior to agreeing a mortgage. If you have done this yourself, you know that the sale of property, especially rented, property purchased for investment purposes, rarely goes smoothly.
No Chain - It is usual that there would be a chain if your client is selling to a lifestyle buyer, This normally means a chain is in place. If a chain collapses the sale gets held up and is another delay. Delays for a property investor means
on thing. Another mortgage payment and then another. The costs start to escalate.
Summary
For a professional property investor it enables them to take control over their sale of the investment product from
the day of purchase. They KNOW their cost of sale, nothing is out of their control and can be budgeted in advance.
This is why the Cenoption has had the success.
It's about a professional attitude and taking control of the investment, instead of leaving it to chance or even worse luck. We have no idea of how the property market will be in the future. Our clients understand that spending a small amount during the acquisition period provides something very special. The ability to control the sale. It may seem like a small point, buy I know many property investors who have lost nearly all the profit from their investments because they left the sale to market forces.
This is an naive view. Anything can happen to the market. At the time of sale, there are many variables which can not be accounted for. Too many "what ifs" The Cenoption can take away all the "what ifs" and replace them with "I Knows' This is massively powerful.
What is your advantage in offering this?
Take away your clients fears of negative equity and prohibitive cost of sale. Securing their clients equity is the number
one reason that many of our clients who source property for others use our services. It has enabled them to sell far more
property than they have been able to before because the service you provide is client focused.
What you are doing by providing you clients with this product is giving them piece of mind at time of purchase. They KNOW that their equity (profit in the deal) is safeguarded. They KNOW that they will not loose money on the property you are providing them.
