Investing in off-plan Property developments, is to purchase a property on a flexible payment plan before the property is complete usually 10-20% below the current market rate 18-24 month before completion.
The developer usually will already own the land and have pre-approval for planning along with a financial instrument in place against homes being pre-sold sounding under a mezzanine debt structure.
Strong advantage purchasing off plan property is only having to put down a deposit from 3-10% within the first month and then flexible payment schedules throughout the build period.(varies from developer and projects in question)
30% down before completion and 70% on completion is common practice within the UK market.
The down payment of 30% can be fixed or flexible, paid over 18-24 months(depending on the developer)
Monies are held in Escrow, client account or held by a solicitor.
All UK property sales must go through a UK solicitor.
You can pay cash, buy to let mortgage or financial vehicle of your choice, depending on your financial circumstances.
We will put you in touch with a panel of lenders through our Mortgage brokerage network.
Most developers will be secured by a performance build bond with a JCT contract enabling a new contractor or developer to tender for the build if anyone in the chain goes bankrupt.
Most contracts have step over rights in place to enable the development gets completed no matter what happens.