How it works?
1. The Reservation Contract
You will be required to complete and sign a Reservation Contract to participate in a High Interest Loan. The reservation Contract includes a specimen of the Actual Loan Agreement so that you will be aware of all the facts before you are required to make a commitment. When you sign the Reservation Contract you will be required to pay a fully refundable reservation deposit of £500/€750. You will also be required to complete and sign an Escrow Agreement which will form part of the financial security for your money, and to provide identity documents.
Once the Reservation Contract has been received we will send you a Loan Agreement so that your lawyers can carry out the necessary checks on the security offered to ensure that everything is in order.
If your lawyer discovers any problem with the security and you decide not to go ahead with your High Interest Loan Agreement your Reservation Deposit will be returned to you. If you simply change your mind then provided you inform the developer within 28 days of signing the Reservation Contract, your Reservation Deposit will be returned.
2. The High Interest Loan Agreement Contract
Once you are 100% happy that you wish to go ahead with your High Interest Loan Agreement you will sign a Loan Contract. This is, in many ways, similar to the contract you might sign in the UK when buying a house. It commits you to a High Interest Loan and commits the developer to providing security to you and paying pre-stated returns each quarter for the agreed period on the sum lent to a bank account of your choice.
3. Security for the money you have paid
Your funds are initially paid into an escrow account and stay there until the contracted security has been provided. This will be in the form of professionally valued land, this is then held in Trust under the Deed of Trust obligations. This enables the Trustee to issue Certificates of Asset Cover to clients to provide their 100% security. Only when the developer has provided 100% security to the satisfaction of your solicitors, will your funds be released from escrow to the developer.
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