AVAILABLE AT THE FOLLOWING DEVELOPMENTS:
At CALA, what we care about right now is helping homebuyers in any way we can. Perhaps you've been trying to get onto the property ladder for the first time but are wondering how you're going to make it happen. Maybe you've always aspired to live in a beautiful CALA Home but haven't quite been able to do it or maybe the recent changes in the mortgage market are making your move more difficult. We understand that the obstacles you face may seem challenging, but CALA has introduced a scheme which aims to help you afford your dream home, and here's how it works.
CALA PAY
You buy 100% of the property. The purchase is funded by way of a traditional mortgage from a provider and a 'loan' from CALA. The mortgage lender takes first charge and then we secure the CALA loan by way of a second charge. This subsequent charge is not for a numeric amount and is instead for a % of the equity. Terms and conditions apply to the repayment of the CALA loan.
HOW DOES CALA
PAY WORK?
CALA could provide you with a loan of up to 25% of the purchase price: if you were seeking a mortgage from a bank or building society this would only need to fund the balance. For example, if it is determined that in order for you to buy, CALA needs to provide 25% of the purchase price through a loan, the mortgage would be for 75%. The remaining 25% becomes a loan from CALA. We will not charge interest on the loan or make any other charge or require advance payment for the credit: instead, where, for example, the loan was 25% of the purchase price, you will be required to repay that same percentage, 25%, of the property's market value on the date the repayment falls due. The 25% would be repayable by a single payment either when you sell or transfer your home or after 10 years - whichever occurs first. If your CALA loan is 25% you pay back 25% of whatever the property value is at the time the loan falls due (your solicitor will have full details of this). The market value of the property will be determined by agreement between you and CALA. In the event that that an agreement cannot be reached a valuation will be carried out by an independent surveyor. The market value does not include the value of any improvements or alterations that the customer has made and self-funded. A reservation fee of between £0 and £1000 is payable and a deposit for the purchase may be payable (amount varies by development) please ask our Sales Advisor for exact amounts.
ILLUSTRATION A:
Reserve a CALA home with a purchase price of £250,000 by paying a reservation fee of £1000. Our usual deposit for the purchase of 2.5% (£6,250) is payable when you exchange contracts/conclude missives. Where CALA is lending 15% (£37,500) the remaining 85% (£212,500) minus reservation and deposit already paid (£7,250) is payable on legal completion (£205,250). In this example if the property is sold or transferred for £270,000 then 15% (£40,500) is payable to CALA. If the property is sold or transferred for £230,000 then 15% (£34,500) is payable to CALA.
ILLUSTRATION B:
Reserve a CALA home with a purchase price of £100,000. In this example, there is no reservation fee and no deposit for the purchase is payable when you exchange contracts/conclude missives. 75% (£75,000) is payable at the time of purchase. CALA pays the remaining 25% (£25,000). If the property is sold or transferred for £110,000 then 25% (£27,500) is payable to CALA. If the property is sold or transferred for £90,000 then 25% (£22,500) is payable to CALA.
HOW TO APPLY
If you would like to take advantage of CALA Part Pay, please speak to one of our Sales Advisors. Subject to our purchasing criteria, you will be advised on the loan amount we can offer you. This may be as high as 25% of the purchase price. The maximum CALA loan amount on some developments is 15% of the purchase price. Please ask our Sales Advisor for details.
0% APR TYPICAL (for further explanation see illustrations above). YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
CALA Management Ltd. Registered Office: Adam House, 5 Mid New Cultins, Edinburgh, EH 11 4DU.
