A deposit rescue initiative has been launched by property investment firm Assetz for distressed overseas property purchasers who have lost their reservation deposits as a result of failed overseas property development.
The new scheme allows holiday home buyers and property investors to transfer their purchase to Assetz' flagship Santa Monica Beach Resort and Spa in Cape Verde, where the money they lost will be permitted to be used as a discount on an equivalently priced property.
Thousands of Brits have lost money on an overseas property purchase in a wide range of countries in recent years, mainly due to the global credit crunch, which restricted funding for many proposed schemes partly sold off-plan, while some developers simply went bust.
Prospective purchasers are allowed to reserve a new home in Cape Verde at the Santa Monica Beach Resort and Spa by transferring their lost reservation deposit, usually in the region of £5,000-£15,000.
Home buyers would not be required to make any further payments until site works on the Cape Verde property development starts in September 2011. The scheme is scheduled for completion in 2012.
Buyers are also being invited to take advantage of a rental guarantee scheme with initial fixed yields of up to 7%, with up to four weeks' personal use annually.
Stuart Law, Chief Executive of Assetz, said: “The Deposit Rescue Scheme offers a lifeline to buyers who have lost money in failed overseas property purchases. They have nothing to lose and potentially plenty to gain by transferring to the Santa Monica scheme, which is being developed in conjunction with the world's largest luxury hotel group and is set to benefit from a strong and growing tourist industry.”