How to release equity on your off-plan purchase upon handover

Did you know, if you have purchased off-plan and the final payment to the developer (handover) payment is nearly due, it is possible to get a mortgage to cover this and also release equity from the property at the same time?

We have access to a new mortgage product exclusively for those who have purchased an off-plan property and require finance to cover the final payment due to the developer upon handover.

This product allows you to borrow up to 80% of the total property value if you are an expat or 85% if you are a UAE national. This means if you have paid the developer up to 50% of the property value during the payment plan period, you can borrow the remaining 50% due upon handover as a mortgage, plus release up to 35% equity from the property. The cash released can be used, for example, to consolidate any other debts you might have.

This is a market leading product with rates from just 2.99% fixed for 5-years.

A case study illustration

For context, we have provided an illustration below based on a recent case we did for a British expat client purchasing in an Emaar development.

Property purchase price AED 1,500,000
50% paid to the developer during construction (payment plan) AED 750,000
Amount due upon handover (50%) AED 750,000

So, the bank settled the AED 750,000 required upon handover on behalf of the client, which was 50% of the property price. This meant there was 30% equity within the property which could be released, since the client was an expat and could borrow up to 80% of the property value.

Mortgage at 80% LTV AED 1,200,000
Amount paid to the developer at handover (50%) AED 750,000
Amount available for equity release paid to the client (30%) AED 450,000

The client was able to use the AED 450,000 to settle some of his existing debts and buy a new car!

If you would like more information on how you can release equity from your property, get in touch today.

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