Estate Living Magazine Retirement Living - Issue 40 April 2019 | Page 49

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couple’s assets – their current property, share portfolio or some
other qualifying asset – that will ensure full payment at the time
property is transferred.
If, for some reason, the buyer is left in a position where they
are unable to pay the full amount on transfer, the developer will
cancel the purchase agreement with the buyer and submit a
claim to Lombard.
The new retirement development at Shoreline Sibaya is proving
to be a success story for the Lombard Property Development
Guarantee.
Neither of these options is particularly attractive to the couple, and
this is where the Lombard Property Development Guarantee comes
in. We are able to issue a guarantee to the developer based on the
‘We have a number of guarantees in place for our development
at Shoreline Sibaya, which helped us enormously in getting the
project off the ground,’ he says. ‘It has also proven very helpful
to buyers, many of whom would not have been able to buy in
without a Lombard Property Development Guarantee.’
Lombard Insurance Company Limited - experts in construction, logistics,
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I
Take a retired couple, for example. Chances are their income alone
won’t qualify them for a bond to buy a new home in a development.
Their plan is most likely to use the proceeds of the sale of their
current property to pay for their new home. In a new development,
this situation is generally not enough for a financier to regard it as a
qualifying sale. So the couple would either have to sell their current
property and find somewhere else to live while their new home is
being built, or liquidate some other asset to secure the full payment
upfront.
Beesley says Gap Capital’s partnership with Lombard has
already yielded great results.