• What to consider when taking out an instalment contract

    An instalment contract allows a delay between exchange and completion and means you can exchange without needing a large deposit which is currently required if you buy property via the traditional route. For a more in-depth description of an instalment contract you can listen to my audio here.

    If you are going into an instalment with someone there are several things you need to consider. First is why you feel that an instalment contract is right for you. Talk to an expert and discuss your individual circumstances to find out if it is the right course of action for you and your seller/buyer.

    If you are a buyer, once you have identified a motivated seller and are good at explaining the concept and contract and everyone is aware of what is required and on board and wants to move forward, you need to put down the terms of the agreement in black and white, on paper, so that you can see exactly what all parties are agreeing to. It doesn’t need to be formal. You need to state the name of the seller as it appears on the deed in order that you are clear you are talking to the correct parties. You also want to clarify that you have taken into consideration all the parties who have interest in the property. I can’t stress how important this is – and surprisingly many people miss this out. A copy of the deeds only costs £4 and it’s worth every penny. It’s also downloading the plans so you can see the property in its entirety. You need to make sure you are speaking to the correct person and know how many people have an interest in the property so that whatever deal you have structured still makes sense and you are still making money, otherwise there’s no point!

    If someone wants to look at delayed completion, long stops, instalment contract they can get hold of me via email reena@reenamalra.com or simply give me a call on 0203 397 7030.

    Find out more about me, Reena Malra, and listen to my audio post about instalment contracts.

     

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    About Reena Malra

    Connect with me: Google+ Reena Malra is one of the UKs most successful property investors and mentors. The strategies Reena has discovered and developed over the past few years take the focus off the price and put it on the flexible and convenient payment terms. This is how Reena can structure transactions to really benefit both the buyer and the seller. Reena specialises in property lease options, instalment contracts, rent torent, below market value (BMV), stopping repossessions, joint venture, delayed completion and tenant buyer strategies. She also runsworkshops and webinars, and offers property consultancy services and one-to-one mentoring.

    View all posts by Reena Malra

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