- 70% guaranteed mortgage
- 100% finance* available – we
pay your monthly interest payment on the 30% deposit
- 30 days
FREE use per year
- Two year 10% RENTAL GUARANTEE followed by 50%
net room rate share
- £1,000 reservation fee and nothing else to pay until completion
There will be several price rises during the build period which
means you will see the value of your property increase over time.
You can sell your property at any time after exchange of contracts.
How to finance your investment property
- £1000 ($2000) non-refundable reservation fee* required
for reservation of a specific property – you must pay
the 30% deposit within 45 days of making your reservation
- 30%
deposit i.e. 30% of the purchase price
- When the property is
completed Harlequin will provide a 70% guaranteed mortgage
i.e. 70% of the value of your property at completion
100% finance** is available - click
here for details and example.
All you pay is £1,000 reservation fee** – nothing
else to pay until completion because we pay your monthly interest
payment on the 30% deposit.
*All options for finance available
will be explored, i.e. unsecured, secured, mortgage or re-mortgage.
Harlequin does not guarantee which method of lending will be
offered. If we are able to obtain finance, from whatever means
as previously mentioned, and the client refuses this for whatever
reason, or decides not to proceed, the reservation fee is non-refundable.
If a client arranges their own finance and is unsuccessful, Harlequin
then reserve the right to try and obtain finance through their
own contacts. In all instances, if we are unable to obtain finance
the reservation fee will be refundable.
**Subject to status. Terms & conditions
apply.
|
 EXAMPLE
OF 100% FINANCE
If
you raise a loan to fund the 30% for your deposit, the developer
will make the interest payments for this amount on your behalf. See
the example below:
30% deposit required (less £1000
($2000) reservation fee) within 45 days of reservation. Should
you choose to borrow the 30% deposit, the developer will pay
the loan repayments, including interest, for the 30% deposit
until completion of the specific unit you have reserved. These
payments will then be added to the purchase price upon completion.
Example (Sterling): Property price £200,000. £1000
reservation fee paid. The deposit = £200,000 x 30% = £60,000
- £1000 (reservation fee) = £59,000. Interest on £59,000
@ 6% p.a. = £295 per month, paid for 24 months by the developer
= £7,080 added to the purchase price upon completion.
Example (US Dollar): Property price $370,000. $2000 reservation
fee paid. The deposit = $370,000 x 30% = $111,000 - $2000 (reservation
fee) = $109,000. Interest on $109,000 @ 6% p.a. = $545 per month,
paid for 24 months by the developer = $13,080 added to the purchase
price upon completion.
Due to the significantly discounted off-plan
contract price and the capital appreciation during the construction
phase, it is anticipated that the £200,000 ($370,000) purchase price
will have grown to a property value at completion of circa £325,000
($601,250)
At this point a 70% loan to value guaranteed
mortgage is available and therefore you will be able to borrow
up to £227,500
($420,875). This is clearly ample to pay for the £199,000
($368,000) (purchase price less £1000 ($2000) reservation
fee) that you owe as well as the accrued interest of £7,080
($13,080) - from the above example.
Assuming you borrowed the maximum loan
to value mortgage, available from the example above, you would
borrow £227,500 ($420,875)
on which the annual interest payment would be £18,200 ($33,670)
based on a rate of 8%. The rental guarantee of 10% of your purchase
price of £200,000 ($370,000) will generate you an income
of £20,000 ($37,000) each year, should cover your mortgage
payments. If you wish you could retain the £59,000 ($109,150)
loan you took out for the deposit, pay the interest yourself
each month, from completion onwards, and use the money to invest
in a further investment property purchase.
*Subject to status.
Terms & conditions apply.
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