Purchase of multiple properties

Many customers, both corporate and individual, use Exchange Bonds to purchase several properties. Indeed, Exchange Bonds are a powerful tool for multiple property purchases.

To issue Exchange Bonds for multiple transactions, we need to satisfy ourselves that there are sufficient assets available in the event that the buyer (corporate or individual) fails to complete the purchase of some of all of the properties.

Information about each property

We need to know the total number of units, and for each property being purchased we require:

• Full postal addresses of all the units (where available) including plot number.
• Full details of the purchase price per unit.
• Completion dates for each unit (estimated).

Information about the buyer

We start with the following information about each buyer:

• Full name and address.
• Date of birth.
• Bank account details (sort code and account number).
• Telephone numbers.
• E-mail address.

We typically require further details for the underwriting process. This can change depending on the particular circumstances. For example:

• Standard credit check against individual(s) (we need written consent for data protection policy).
• Verification of UK based assets (for a wealthy individual, we would look for some form of corroborated validation of wealth such as an accountant's confirmation of assets and a bank reference).
• Personal guarantee (for a corporate entity with no substantive assets).
• Verification of corporate UK based assets, audited report and accounts with up to date certificate of good standing from an independent accountant.

In exceptional circumstances we would require a valid security interest in identified assets. We would not be seeking a formal valuation of such assets provided we were satisfied as to approximate values. We would prefer not taking security over an individual’s home. Security may be provided by a third party.

Additional complexity can be encountered if a customer is a foreign national because there is unlikely to be a credit history in this country which we can reasonably assess. It is not necessarily a block on doing business, it merely increases the checks and validations that we would require. Areas that would help include formal mortgage offers over the subject property, an ongoing relationship with the applicant’s IFA and a track record of doing this kind of business, preferably reflected in a holding of UK property. Volume is also a factor.