"Lock in value equity" is a service which is providing a solution for homeowners who want to protect themselves from falling property prices. It gives them a guaranteed price for their property if the market value falls - but they can still take advantage of any rises. Let's look at "Lock in Value equity" in greater detail.
Essentially it provides the following benefits:
- Homeowners for a small fee can agree a lock in price with a company which is the MINMIUM they will receive, if they decide to sell their property, while the contract is in force and these contracts can give protection for up to 10 years.
- There is no obligation to sell to the company who provides the contract. this is up to the homeowner. If prices fell, they may decide to take advantage of the lock in price - but if prices rose, they could sell to whoever they wish.
Advantages of "Lock in Value Equity" Contracts
So the contract provides the right but not the obligation, to sell the property to the company providing the service. If prices rise, you can sell to whom you wish, if real estate prices in general fall and the property is valued at less, you can sell for the higher locked in price - the choice is yours.
These services are provided by a number of companies and there meeting a need which is:
People are uncertain about the outlook for real estate prices. We have seen falls and the economic climate points to further declines.
These contracts provide a way of protecting the value of one of our most important and valuable assets - our home or investment property.
Why these contracts are more popular than ever
These contracts are more popular than ever and there available at a small affordable fee.
With protection of up to 10 years, more investors than ever before are taking advantage of them. Most contracts allow you to take advantage of the lock in price after a period of two years after the contract has been signed.
Protection against Uncertainty
Real estate is cyclical and we have had a real estate boom for many years and now we are seeing a downturn. With consumer confidence low, a credit crunch and more falls likely, "lock in value equity" contracts are becoming more popular, as they offer peace of mind at an affordable cost.
