Our properties can either be purchased on a long leasehold basis or some of them may be purchased under our licence deposit arrangement which has proved extremely popular. Basically rather than pay a purchase price to buy a property you pay a returnable deposit which is returned to you when you decide to vacate.*
Our leasehold properties are sold on a new 99 year lease at a ground rent of £100 P.A. (This only applies to newly refurbished properties being sold by the owners as existing residents will have their own individual leases)
Our license deposit arrangement include the following:
The price of a property on our popular licence deposit scheme is typically 15% less than the market value. This means that some people are able to occupy properties at Southdowns that they otherwise may not be able to afford. If you decide to move at any time you simply provide 3 months notice to us and your deposit* will be returned.
There are no long delays whilst you try and sell the property or selling fees and you do not need to instruct an estate agent. You do not even need to use a solicitor – you simply write to us and the deposit* is returned to you. This also applies if you pass away and your estate deals with the matter. The deposit* will simply be returned to ‘your estate’.
You are immune from changes in property prices in respect of your property at Southdowns. If the value of the property falls you will receive your original deposit* back whereas otherwise, you may have made a loss. Of course, if property prices increase then you would still get your original deposit* back. You would use your own solicitor to act for you when you enter into an agreement with us who would of course ensure that you are fully protected.
*The deposit that you pay is held by us. When you vacate it is refunded to you less 2% for each year of occupation. So if you paid a deposit of say £200,000 and occupied a property for 4 years then you would receive back £184,000. It would have cost you just £4,000 a year. The reason for the deduction is to make a contribution to the refurbishment that we carry out whenever a resident vacates it currently costs us between £20,000 and £30,000 to fully refurbish a property at Southdowns when a resident vacates and we think it is only fair that a contribution to this is paid by the occupier.