Our 5 Off Plan Property Guarantees - CEASED
Brett Alegre-WoodChairman, YPC Group
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Effective from July 13 2011.
THESE GUARANTEES HAVE BEEN CEASED UNTIL THE MARKET RECOVERS.
THEY ARE HERE FOR REFERENCE UP TO AND INCLUDING PROPERTIES RESERVED BETWEEN 16th MAY 2009 AND THE 12th JULY 2011. AFTER THIS DATE GUARANTEES DO NOT APPLY.
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Hey guys,
We've been offering our usual property guarantees since the beginning of 2006 and they have been such a huge success that I have decided to extend them to the off plan property that we are jumping back into now that we are clearly entering the recovery and growth phase of property.
Off Plan presents such a massive opportunity but we also realise that committing to the purchase of a property with a completion date into the future can present many risks (as well as many rewards). With this in mind I've decided to take away some of the risk if we don't do our job to the highest of standards that you've come to expect.
So what are these guarantees I'm talking about?
Off Plan Property Guarantees.
1. Valuation Guarantee - If the value at completion has dropped below our valuation, or
2. Loan to Value Guarantee - If the Loan to Value we stated in the cash flow worksheet is not achievable or,
3. Rent Received Guarantee - If the rent you receive is not within £50 per calendar month for properties below £200,000 or £100 per calendar month for properties above £200,000 of what our research says, or
4. 6 Weeks to Let Guarantee - If we don't let your property out within 6 weeks of completion.
Then we'll fully manage your property Free for a Year!
Finally, our favourite guarantee -
5. 24 Hour Property Sleep Test. Once you have decided to go ahead we'll give you a full 24 hours to sleep on your decision. If you don't have a restful night's sleep, tell us and you'll have lost nothing.
We've been in this game long enough to give you some level of certainty...
As you can imagine we are taking on considerable risk here, but I really believe that our team can perform on each one of these property guarantees. They are trained in my fundamental principles and I believe the quality of our property is so good that only a very small portion of clients will need to exercise any of these guarantees.
If you had to choose, why not choose the company that offers you some certainty...
It would be irresponsible to say that your valuation won't drop, the rents won't drop or things won't change between exchange and completion. With terrorism, floods, famine, pandemics and other sort of things affecting our lives in so many ways we simply cannot say something won't affect the property you are buying.
It would also be irresponsible to say that we'll refund all your fees if something happens outside our control but at the same time I feel we can create a massive point of difference from any competitor by offering something that will help you out if something changes.
So I decided that managing your property free for a year is something that won't send the company bankrupt if we have to pay out on a massive scale (if say Swine flu does evolve) but it still offers something that I am sure none of our competitor dare offer. Let's face it, none of our competitors have ever bothered to offer any form of guarantees.
Seems too good to be true?
I know it might seem too good to be true but in the spirit of my 1, 2 STOP strategy, I think this will get our relationship off to a fantastic start. After all, you are guaranteed the value, guaranteed to let the property and receive a rent in the region that you expect as well as receiving a suitable loan to value. The bottom line is that if we don't offer you properties that meet these strict criteria we deserve to at least make sure the property is looked after free for a year.
The other thing it does is take away some of the emotional hurdles you will encounter as you build your portfolio.
Let's get this relationship started!
Please have a read of the conditions below and if you have any questions please call the team, they will be happy to clarify anything.
Live with passion,
Brett Alegre-Wood
PS: Our guarantees are offered in the spirit of building a strong relationship and in creating a massive point of difference between YourPropertyClub and many of the other companies that offer all sorts of properties out there, but yes, as with everything in life there are conditions. It's such a shame that life these days is so complicated, but I feel I should spell out exactly what I mean by each guarantee. These conditions are listed below in the large print. (I have nothing to hide). I reserve the right to withdraw this at any stage if I feel that people are abusing the offer.
The Small Print in Large Type (Terms and Conditions)
Reservation and finders fees:
a. Must be paid on time as indicated on the invoice and normally within 7 days of reservation. This is taken to be receipt of a cheque at our office, receipt of deposit into our bank account.
b. In the event a cheque does not clear all guarantees are invalid.
c. Valid on property in the UK only.
d. You will be notified on the Reservation Form if these guarantees apply.
Mortgage Guarantee:
a. The idea of this guarantee is to guarantee that we are not offering you a loan to value which is unrealistic in the market.
b. We will endeavour to secure you a mortgage at the loan to value stated on the cash flow work sheet.
c. This guarantee does not relate to the loan to value you can secure only that there are products on the market. 'Products' is defined as at least two mortgage products on the market that are suitable for the type of property you are buying. For example if you are buying a house that a loan to value as stated is available for houses.
Rent Received Guarantee
a. The idea behind this guarantee is to give you certainty that we have undertaken our due diligence and to the best of our knowledge you will receive an amount within Â?50/Â?100 of the Realistic Market Rent taken from the Cash flow worksheet as published on our website at the time of reservation of your property.
b. For properties valued above the ?200,000 valuation the rent will be within ?100 per calendar month and for properties valued below the ?200,000 valuation the rent will be within ?50 per calendar month.
c. If the difference between the rent we said you would receive and the gross rent agreed with the tenant is greater than ?50 per calendar month.
d. This guarantee is only applicable to the first time that the property is let out.
e. In the event you reject a suitable tenant this guarantee will be void.
6 Weeks to Let Your Property Guarantee
a. The idea of this guarantee is that our due diligence into the location of the property and the development will mean your property has a fantastic chance of being let out within 6 weeks of the completion date.
b. In the event flooring is required the guaranteed is that the property is let out within 8 weeks of the completion date.
c. 'Let out' as referred to above means a tenant expresses interest and the agent says that they have confirmed they are taking the property. This will normally mean the date the potential tenant lodges an application and not when they actually move in. This may mean that they move in after the expiry of the 6/8 weeks mentioned above.
d. If a suitable tenant is found and they require furniture you must provide this furniture otherwise this guarantee will become void.
e. In the event you reject a suitable tenant this guarantee will be void.
f. If any of the 6 week guarantee period coincides with bank holidays and other public holidays the guarantee is extended to 8 weeks from completion date.
g. YPC will not guarantee against a potential tenant who does not pass their referencing checks. Estates agents upon receiving an application may stop marketing the property. Referencing can take up to a week or more therefore YPC cannot guarantee that a tenant will pass referencing. In the event an application is rejected due to referencing coming back unsuitable this guarantee will not apply.
Manage your Property Free for a year.
a. If we don't fulfill any of the above guarantees then we agree to manage your property for a full year using YPC Lettings Ltd.
b. This includes only YPC Lettings 'fully managed' service which is normally 10%/12% of the Gross Rent per Calendar month.
c. The guarantee does not cover costs associated with the management of the property only the monthly management fee.
d. You will still be required to pay the usual local lettings agents fees associated with letting and or re-letting the property. This will normally be the costs associated with their 'Let Only' service and may also include an inventory, any regulatory and other charges required to let the property.
General conditions
a. Guarantees are not redeemable for cash and have no cash value.
b. If at any point along the process between Reservation and your first let you become uncontactable for more than 48 hours without prior warning or you do not return calls within 48 hours all guarantees become void.
c. The property must be in a tenantable condition for the guarantee to be valid, this can mean that if major snagging issues arise that affect the ability of the property to be let out this may void the guarantees. Obviously we would work hard at correcting these issues before they affect the lettings but YPC cannot guarantee the overall build quality of each development and plot. This will be at the sole discretion of the team at YPC.
d. Should you choose not to use our chosen Snagging company to deal with snagging items on your property all guarantees will be void.
e. You must use our designated Solicitor/s for the conveyancing.
f. If at any time it is felt that you have compromised the ability of the property to let out the guarantees will be void.
g. All guarantees are void if you choose not to use the appointed local Letting agent which shall be appointed by YPC Lettings Ltd. We cannot accept responsibility for the poor performance of agents we are not managing.
h. Guarantees may be withdrawn without notice at any stage. This will not apply to properties that have already been offered the guarantees and which all fees have been paid.
i. Only one year of Free management per property is allowed. If we fail to meet two guarantees it will still only be one years free management.
Error or Omit Error
(Last updated - 14 May 2009.)
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