Delayed Completions (“DC”) is an extremely versatile strategy for transacting property sales and purchases. Essentially, as the name suggests, it involves an Exchange with the Completion of the transaction occurring at a date some time in the future. This allows flexibility in the transaction for both the Buyer and Seller. During the term of the delayed completion, the property is either purchased by OCR Investments Ltd. for their own portfolio or sold on to a third party (i.e. Investor or Tenant Buyer).
Benefits for the Homeseller:
Speed - It is possible to sell a property very quickly using a DC sales contract. A mortgage is not required at Exchange of Contracts. OCR Investments Ltd. can “Babysit” the existing Mortgage until the sale Completes. During the term of the delayed completion, the property is either purchased by OCR Investments Ltd. for their own portfolio or sold on to a third party (i.e. Investor or Tenant Buyer).
Full Market Value Sale – It is possible for a homeseller to achieve a higher contracted sales price than they would achieve on the open market. The final sales price obtained when selling a property on the open market with an estate agent can often be 5-10% below the asking price. In addition, estate agency fees and solicitors fees often eat into this. A DC can therefore save the homeseller 5%-10% on the sale of their property.
No Equity/Negative Equity Home Sale – For homesellers with no equity or negative equity. DC often avoids a Homeseller having to lose out financially and not have to carry the burden of debt with them into the future. For many Homesellers in negative equity, they lose the initial deposit which was used to secure the property when they initially purchased it. A DC can therefore eliminate this unwanted ‘Debt’.
High Equity Sale – For homesellers who have equity, this can also be a great way to maximise the value of their property as an Investment. It is feasible that by opting for a Delayed Completion Sale, a homeseller with equity will undoubtedly secure a much higher transacted sale price than if the property was sold on the open market. It enables future capital appreciation whilst at the same time allowing the withdrawal of a large proportion of current equity (up to 75%) in order to invest in another property. This results in overall capital appreciation for two properties instead of just one.
No Ongoing Financial Commitments – after Exchange of Contracts, OCR Investments Ltd. undertakes to look after all the maintenance and outgoings on the property. These include, mortgage payments on behalf of the homeseller, buildings insurance, ongoing maintenance and ongoing upgrading to ensure the property is constantly modernised.