Exchange Bond boosts sales for Crosby Lend Lease

The Exchange Bond®, a pioneering financial product that frees buyers from raising a cash deposit to secure a property, has doubled sales at Crosby Lend Lease’s Vallea Court development in Manchester.

It also helped to kick-start sales significantly at the company’s prestigious i-Land development in Birmingham at its launch last weekend.

This is the first time the Exchange Bond® has been available to buyers of Crosby Lend Lease properties. As a result of this initial success, it is now being offered exclusively to purchasers at greenquarter and i-Land by the premium developer.

The Exchange Bond® was introduced to potential home buyers at Vallea Court, part of the Greenquarter development in Manchester, at the end of last month (January). In the three weeks since the introduction of Exchange Bond® sales have doubled.

On Saturday 24 February properties at Crosby’s unique i-Land development, consisting of 272 one and two bedroom apartments in central Birmingham built around a calming water courtyard, went on sale. The combination of the development’s stunning aesthetics and the availability of the Exchange Bond® generated hugely impressive sales.

Created by City of London-based Exchange Insurance (ExCo), the Exchange Bond® is the first of its kind in the UK. It is a financial guarantee provided by ExCo to a seller on behalf of the buyer that replaces the cash deposit required to secure a property purchase. This unique bond offers a simpler and more affordable way to buy property.

Traditionally buyers have been required to make cash payments on exchange of contracts and then wait months, or several years for completion. Using the Exchange Bond® to exchange contracts instead of providing a cash deposit, however, means that the buyer simply pays 100 per cent of the agreed purchase price at completion.

Commenting on the success of the Vallea Court development, Peter Vella, Sales and Marketing Director of Crosby Lend Lease North West, said: “The introduction of the Exchange Bond® has had a very encouraging influence on our sales and it can only continue to benefit us as a developer. The Exchange Bond® has been popular with investors and first-time buyers alike.”

Keith Hazeldine, Sales and Marketing Director of Crosby Lend Lease Midlands, added: "The Exchange Bond ® is a fantastic marketing tool. When potential property buyers realise they don't need to stump up a large cash deposit straight away, they are much more likely to sign on the dotted line."

Frank Speight, Sales and Marketing Director at Exchange Insurance, said: “The Exchange Bond® is revolutionising the property market. Crosby‘s experience demonstrates the strong and positive impact which it has when it is available, especially at the launch of new developments.”

Crosby Lend Lease found the cash needed at exchange often restricts people when buying property. The company’s sales teams were often asked to agree to reduce the cash needed at exchange before buyers would commit. The introduction of the Exchange Bond® solves this problem.

Developers face a particular difficulty in the case of investors keen to buy several properties and, therefore, requiring them to make a substantial lump sum payment at exchange. The investor’s main concern is that their money could be working for them elsewhere. The Exchange Bond® is an attractive alternative to making a substantial payment since it enables them to retain their funds between exchange and completion.

For Crosby Lend Lease the Exchange Bond® represents a unique and powerful marketing tool to offer buyers, particularly when they are selling units off-plan.