How Does It Work?
Sometimes in life, things that appear complex on the outside are actually quite the opposite when you break them down. The structured purchase falls under this heading.
The vendor is struggling to get their property sold for the price they expected to achieve. It doesn’t matter if you are a landlord trying to sell a portfolio, a beneficiary from a will, a person who is emigrating or anyone else how is struggling to sell.
Archway Property Solutions can take away all the stress and hassle from the sale by taking responsibility for property over a fixed term.
It may be the case that the term does not run to the end and Archway either complete on the sale (the company buys the property) or they find an external buyer. At this point, the vendor receives the monies agreed at the start of the term, this is usually the full asking price however, it may be slightly more!
This process is completely legal, and solicitors will explain everything you need to know.
The term can be anything from 2 to 7 years and this is completely negotiable.
During the term the vendor receives a guaranteed fixed monthly income from the property. There is no hard and fast rule as to what that income will be. Again, this is something which can be negotiated.
What's In It For Me? - The Vendor
The vendor will make ultimately make more money, have less stress and less costs.
So, lets break that down.
As a vendor selling a property, how much will you be paying in legal fees and estate agent fees when you sell your property? By using a structured purchase that up-front cost is gone! Archway Property Solutions will cover the cost of one of our recommended solicitors AND pay your estate agent fee! Needless to say, this varies greatly depending on the property and the agent being used however, it will be several thousands of pounds.
Your property becomes your high interest bank account for the duration of the term. The guaranteed monthly payment means that you can sit back, enjoy the income from your property without having any of the issues now associated with being a landlord.
You are not responsible for the renovation or general maintenance of the property. So many vendors would love to get the highest figure possible for their property but don’t have the funds available to do the work. Archway will do that work for you!
You know what figure you will be selling your house for at the end of the term. Nobody is going to be wasting your time trying undervalued offers, the price is set in stone (law to be more precise) from day one. You won’t suffer the cost and frustration of chains falling apart or sellers pulling out of a deal at the 11th hour.
You wont be having potentially difficult conversations regarding the price of the property and any reductions they feel you need to make.
The total value of the deal (how much money you saved at the start of the term, plus the monthly income, plus the selling figure) will exceed what you can get by selling your property today several thousands of pounds.
What's In It For Me? - The Estate Agent
The first and most obvious advantage to an estate agent is the ease of getting commission. As an agent, the fee you would have gained from selling a property is paid without you having to sell!
The property which you have been stuck with while your vendors become increasingly frustrated is no longer an issue. It is off your books, and you have been paid.
You don’t need to worry about a chain falling apart on a property (perhaps not for the first time). There is never a chain involved at the agreement stage. There is no need to take potential customers on endless viewings.
There is no limit to the number of properties you can get paid on using this method. Archway are always interested to hear about the next potential vendor who has a problem property.
It may be the case that you are also going to be the letting agent for the property. Archway use properties for several purposes and, if the property is a straightforward rental, and you have a lettings department, then you will be gaining that business.
Is this for everyone?
The short answer is “no”. The structured purchase does not work for sellers who need the lump sum from their property immediately. If you need to sell to fund your onward purchase, this isn’t for you. However, thousand sellers do not come under this category. They simply have a property problem which they would love to go away, whilst making a substantial sum of money.
If this sound like it could be for you, get in touch for a discussion about your property and your expectations. We just might be the answer you are looking for.
- Vendor has a property they are struggling to sell.
- Their agent introduces their customer to Archway Property Solutions, or a seller may contact us direct.
- There are negotiations between the vendor and Archway Property Solutions to establish length of the term, the final payment figure and the monthly sum to be received.
- If applicable and once agreed, Archway Property Solutions pay the estate agent on behalf of the vendor and cover the legal costs for all parties, using the preferred solicitors. The legal process usually takes around 6 weeks however, this may vary.
- Once the legal process is complete, Archway Property Solutions take the keys to the property and the term begins. Archway Property Solutions use the property as they see fit whilst dealing with any issues as they present themselves.
- In the future, the vendor receives their final payment. Until that time, the vendor receives a completely passive monthly payment.
- Note, there may be an option to extend the agreement if both Archway Property Solutions and the vendor agree that it is beneficial to both parties.
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