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Protecting You against Falling Property Prices

LIVE gives you peace of mind by enabling you to lock in the value of your property at a specific price.

The price at which you lock in your property, is the MINIMUM value you will receive for your property when you decide to sell it. Locking in the value of your property at a specific minimum value has significant advantages for homeowners, who do not wish to suffer losses, should house prices fall.

The concept is simple, provides you with protection and peace of mind, and comes at a highly competitive price. We have outlined below, how the concept works and the salient points for you to consider in taking advantage of LIVE.

What is LIVE (Lock-In Value Equity) ?

Whether you are an existing homeowner, or contemplating a purchase, you will be aware of the possibility that home prices could fall, causing you to lose money when it comes to selling your home.

LIVE enables you to be sure that you will always be able to recover the amount you paid for your home or its subsequent higher value, depending on when you take out your LIVE option, even if house prices decrease.

LIVE provides you with certainty and can only be exercised at your discretion. In the event that home prices decline and you decide to sell, you may exercise your option. If house prices rise, you will probably choose not to exercise your option. You have the choice. Either way, you win.

How the LIVE option works - an example

Assume you are a current homeowner and your house is worth $200,000. You wish to ensure that even if property prices fall, the amount you receive for your property, will never be less than $200,000. You thus "lock-in the value" of your property.

In exchange for a one time fee you have an option to sell the property to us at the agreed price, which will be the locked in value, for a period of 10 years. There is no obligation whatsoever to sell the property to us within that period, or at all.

In this way you have locked in the value of your property and will know precisely the minimum you will receive for it. If in three years time you want to sell your house, and you are offered $240,000, accept the offer. But if prices drop, and in three years time the best price you can obtain is $175,000, we will buy it from you at the agreed price of $200,000.

Example Of LIVE:

As you know property values fluctuate and, at present, we are at what appears to be a good time to sell your home, but what if these values should fall before you want to sell your home?

You could lose a considerable amount of money when you sell your home if the market is down.

For example, imagine a homeowner who bought a house in 2002 for $200,000. This homeowner made improvements and maintained his home over the next five years. In 2006, he took out a LIVE option at a value of $270,000, thereby locking in that value. In 2009 he decides to sell his home.

If property values increase during the time he has owned the house, to let's say $300,000, then he would be able to sell it making a profit of $100,000 and he wouldn't use his LIVE option.

BUT

What if at the time he sells the property, the market took a downturn, or there was a drop in value in his local area.

If the property's value dropped, then he would lose part or all of that profit. If the homeowner purchased a LIVE option, he would have been able to sell the property for at least $270,000 and would have secured his profit on the sale.

How does the LIVE option work?

We offer you an opportunity to sell your property to us at an agreed value, which is generally the market value prevailing at the time you take out the option.

Once the lock-in value is determined, we enter into an agreement which gives you the right to sell if you so wish (you decide) and we will be bound to buy your property at the price agreed for a period of 10 years.

As every property is unique, the LIVE fee depends on the particular property, but is based on the agreed value. This all inclusive fee includes all administration and valuation fees. The LIVE option becomes exercisable 36 months after the date of the option agreement