Many people find that they face repossession as a result of  difficult circumstances in their life – redundancy or ill-health for example – and that over time they get back on their feet and can afford to buy the property back again.

 

We can include a Buy Back Option which gives you the opportunity in seven years time to buy the property back at a discounted rate.  The discount we offer you will be the same discount we bought it from you less 10%.
 

The reason we give the option in seven years time, and not sooner, is to ensure that your credit file is repaired and you are in a stable financial position that you can afford to buy it back.  After all we don’t want you facing repossession again!

 

In seven years from the day of completion you will have the option, but not the obligation, to buy back the property at The Option Price determined by one of the two methods below:

 

The Option Price will be the higher of the Discounted Market Value Price OR the Minimum Option Price

 

Discounted Market Value Price is the market price, as set by the average of 3 valuations:  
Colleys, Countrywide, and one other of your choice  LESS  the discount you sold it to us at  minus 10%.
Eg You gave us a 30% discount then your discount would be 30-10= 20%.

 

Minimum Option Price is the price we paid  plus 20%.

 

Lets look at 2 examples now when these two prices might come into play. Lets say your property is worth £160,000 and we bought it for £110,000 a 31.25% discount off market value.

EXAMPLE 1 -

When you would pay the
Discounted Market Value Price.

EXAMPLE 2 -

When you would pay the  Minimum Option Price

In 7 years time the property is worth £200,000, so the Discounted Market Value Price would be £157,500. Your discount would be £42,500.

In 7 years time the property is worth £150,000, so the Discounted Market Value Price  would be  £118,125.  However as  the Minimum Option Price  is £132,000, then The Option Price would be the higher of the two, that is £132,000. Still a £18,000 discount for you.