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Is it worth insuring a buy to let property transaction?
Have you ever lost money on buying a buy to let property without even buying the property?
By: Patrick Shannon
The story is quite simple.
You find the right property, check the rentals in the area, put in an offer and then start to spend your money on the transaction. All seems to be going well and then BANG the whole transaction collapses through no fault of yours. So, you are left with a great deal of wasted time and money and everyone says it's just one of those things that can happen in a property buy or sell chain.
The frustration when this happens is immense, and we tend not to have the protections other countries use to safeguard property transactions such as deposits. Of course, it's not just Buy To Let investors with purchases or sales that are left hanging and out of pocket due. It's a major problem in the whole Buying and Selling property market. How big?
Well it seems you are not alone. According to research from a moving company over 100,000 property sales fell through last year. Their research says that this cost buyers and sellers over £316m last year.
I guess this puts the issue in perspective and probably explains why Exchange insurance has become such a popular product. If property is your livelihood then you take it seriously and just like insuring other parts of your life, you minimise your risks, by taking out this insurance to protect you from the unexpected and unrecoverable financial losses.
Out of context you often think, is it worth it, this cannot happen to me. In context, you realise that it happens to an immense number of prospective property buyers and sellers every year and maybe makes a lot of sense. Hence why we decided we had to offer this service.