Building Plot Investment with a Guaranteed Return of 13% per
This provides an unrivalled investment opportunity for clients who do not wish
to take possession of a North Cyprus Property but are seeking an attractive and secure return
on their funds.
For valuation purposes, the land on which a Mirage Villa is to be built has
a market price of £24,000, and the villa when constructed will add a further
£61,700 of value.
The Purchaser buys an Option to acquire a building plot investment at the valuation
price of £24,000. The Option is sold to the Purchaser at the valuation
price, without premium. The Option matures in 13 months, at which time the
building plot would devolve to the Purchaser, together with any building work
which has taken place on the plot.
The contract contains a clause whereby Wellington Estates is empowered to
rescind the Option after 12 months on the basis of a full refund of the contract
value, plus interest of 13% per annum.
In this investment model, the Purchaser acquires an Option to buy a nominated building
plot. Wellington Estates has the right to begin construction of a villa on the
land, although the decision to build and the pace of any construction will be
determined by Wellington Estates alone. This means that in addition to the security
of the Option, the Purchaser will enjoy an increase in the value of the Option,
based on the capital appreciation of building land prices, and as a further
assurance, is likely to benefit from the security offered by the villa which
Wellington Estates may construct on the land.
Mr Smith wishes to invest and reserves an Option to acquire a designated building plot and pays
a refundable deposit of £2,000.
Mr Smith makes a full settlement of £22,000 within 14 days, making
a total payment of £24,000. The payment of £22,000 is lodged with
a nominated UK Chartered Accountant.
Wellington Estates solicitor furnishes proof of Freehold Title of the building
plot and a record of the Option in North Cyprus. The funds are then released.
Wellington Estates may exercise the right to commence construction of a
villa on the land, and if so, will provide monthly progress reports and pictures.
At the end of 12 months, Wellington Estates exercises the right to rescind
the Option by way of making a payment of £24,000 plus interest of 13%,
namely, £3,120, making a total of £27,120.