A product for landlords to sell their future rental income is being launched by a finance company this week.
Landlord Rental Advance, from Ampla Finance, is described as providing liquidity on day one of a new tenancy which the landlord can then use as they wish.
A statement from Ampla say the funds can be used for any purpose “whether assisting with the purchase of a new rental property, improving the energy efficiency rating of an existing property, or perhaps paying down part of a buy to let mortgage.”
According to Ampla the scheme works like this.
Applications can be made by landlords, but only those who let via an agent approved by Ampla. A decision is then made on whether to accept the application, usually within two working days.
Once approved, Ampla will provide the landlord with 89 per cent of the rental payable by the tenants over the following 12 months after deducting agent management fees and what he firm call “a small administration charge.”
During the period of the agreement, the letting agent will pay rents received from tenants directly to Ampla and then at the end of the contract the landlord is eligible to apply for a further contract.
In 2020 Choices Estate Agents - a nine-branch lettings, sales and investment agency in the south east of England and with associate brands in Kent - rolled out the Advanced Rent Option, following a two year pilot.
This offered landlords a year’s rent up-front.
This involves the agency collecting rent on a monthly basis but providing investors with a lump sum to manage their buy to let mortgage payments or to use as capital towards expanding their portfolio. Subject to referencing, ARO provided landlords with up to 12 months' rent in advance minus agency fees.
The Ampla product is being launched this week at a Propertymark event for lettings and estate agents at London’s Wembley Arena.
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Crikey, what a load of trollop, yes let’s all hand our rent stream to this outfit for them to make a profit on it and return the reduced balance to us months down the line.
Jokers!
A key difference is The ARO is a management service for which we charge the same as our normal undiscounted Management service,at 11% plus an admin fee and the agents fees this isn’t comparable really
Your reply is not grammatically correct.
Please take more care of the written word if you wish your business proposition to be treated with equal care.
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