FlexAssist is a flexible ‘Help-to-Buy’ programme, offered exclusively to Prime Kapital clients, which helps you buy
a new high-quality home. Enjoy the option to make the purchase at a pace that suits you best!
How does it work?
- You Benefit from ‘early bird’ sales discounts;
- You get an exclusive right to buy a high-quality home, in maximum of 15 years from its completion, based on the Pre-SPA;
- You have to make only a minimum 10% down payment;
- Occupy through a rental agreement from Day 1;
- In the pre-SPA stage, you benefit from further sales price discounts realized from rental payments;
- Option to obtain a loan from developer for up to 75% of the unit’s value to pay the remaining sum.
Who is eligible?
The program is only available to individuals who purchase a property within Avalon Estate and use that property as their primary residence. With FlexAssist, you can buy your dream home even if:
- you do not have sufficient funds for the minimum advance required under a mortgage loan;
- you have sources of income that are excluded when assessing your financial eligibility for mortgage finance, or they are subject to adjustment coefficients that significantly reduce the amounts taken into account for granting a mortgage loan;
- you are a young professional, at the beginning of your career, and therefore you do not have at this moment a high enough income to obtain a mortgage, but you have very good prospects for a substantial increase in income in the near future.
The Pre-SPA agreement
The agreement secures exclusive long-term rights of up to 15 years to complete the transaction at the price set today. With a such an extended payment term, you have the following advantages:
- You can complete the transaction in your own time and at you own pace;
- You have the option to supplement the advance as you wish, without additional costs, thus getting to buy the house faster and benefit from price reductions offered by the developer;
- You can choose how you want to pay: you own sources, mortgage or developer loan;
- You are not exposed to property price escalations post completion of the development.
Throughout the pre-SPA period, you will receive a discount on the purchase price for each rent paid. Thus, for the 15 years you receive cumulative discounts of 20% of the price. 1
1(1) The price reduction program is subject to special conditions and contractual terms, which may vary, in particular depending on the amount of the advance, the period of the lease and other factors. For details please see the Additional Information section or contact us.
The Rental Contract
The Rental Agreement is signed for an initial term of 5 years compelling you to use the unit solely for the purpose of primary residence. At the end of the initial term, the contract can be renewed annually until the deadline for concluding the sale contract (maximum 15 years).
The value of the monthly rent is set in EUR but paid in RON. Its value will be adjusted quarterly according to Euribor at 3-month intervals.
Minimum down payment
10% of the agreed price
Money back guaranteed
Guaranteeing the return of the deposit is one of our small contributions towards your comfort.
Benefit from flexible solutions perfectly aligned with your needs, which give you the freedom to adapt to changing future needs.
After the first 3 years:
- You may opt to sign the sale contract and complete the transaction with your own funds, bank loan or a loan from the developer;
- You can continue to rent and to benefit from discounts against the sales price;
- You have the possibility to pay additional deposits (as you wish) and obtain a mortgage loan or a loan from the developer.
Optional Developers Financing
During the pre-SPA you can access a loan directly from the developer (PK Sepia S.A.) for the purchase of your house, with the following features:
- maximum period of 30 years;
- the credit is granted in compliance with the legislation in force at the time of granting;
- equal monthly instalments (360 instalments for the maximum loan period);
- variable interest rate updated quarterly (Euribor 3 months plus a fixed margin of up to 8% per year);
- the loan is secured by a mortgage on the financed property;
- main conditions for granting:
- you were not late in paying the rent;
- the value of the loan does not exceed 75% of the market value of the home;
- the granting of the loan complies with the legislation in force at that time;
- taking out life insurance and property insurance;
Representative example: for a loan from the developer in the amount of 76,500 Eur granted for 360 months (30 years), with zero commission for analysis and credit administration, where costs such as property evaluation, life and property insurance are paid separately: The variable interest for the whole credit period is: EURIBOR + 8%, Fixed rate: 557 EUR / month; Total amount payable: 200,544 Eur; DAE = 8%.
We advise you to analyse the characteristics and implications of the loan before making the decision to borrow. Make sure you understand the risks associated with credit agreements, mainly with respect to fluctuations in your income, changes in benchmarks, variable interest loans or currency risk, if the income you earn is in a currency other than of the loan.
What does a pre-SPA contract entail under the FlexAssist program?
The pre-SPA (pre-Sales and Purchase Agreement) establishes the conditions under which the purchase of your home is made. In it, the buyer promises to buy, and the seller promises to sell a house whose construction has not yet been completed. If in the case of a standard pre-SPA, the payment of the purchase price must be made at the time of completion of construction, while in the case of FlexAssist, the obligation to pay the purchase price is not correlated with the completion of the construction, but it is set in the long term, in maximum 15 years from the completion of the construction. Thus, you can complete the purchase at your own pace, enjoying long-term flexibility.
Why do I have to use the property as my main residence?
FlexAssist involves significant resources from us, both financial and administrative. These, like any other resources, are limited, and therefore we want to use them exclusively to support those who want to buy their dream home. The condition that the building be used during the lease contract exclusively as the main residence ensures the fulfilment of this desideratum, by eliminating access to FlexAssist program of those who only want to make a real estate investment.
Can the right of acquisition be inherited in the event of death before the transaction is completed?
Yes, it can be passed on to descendants. Because we want you and your family to be protected, we insist that you always have life insurance.
Life insurance is a way to protect the financial stability of the whole family, for the entire duration of the contract by offering financial compensation in case of disappearance of the insured person. The insurance policy will be contracted directly by you.
In the event of such an event, the beneficiaries of the insurance can use the compensation to make the purchase within 90 days from the date of the event.
If, on the other hand, they do not want to make the purchase, both the pre-SPA and the lease expire.
What are the consequences of non-compliance with the pre-SPA?
Failure to comply with the contractual obligations regarding the payment of the purchase price will result in the retention of the down payment (payments) paid and the loss of the price reductions offered during the contractual period.
What are the consequences of non-compliance with the terms of the lease?
Failure to comply with the lease agreement may result in termination of the pre-SPA with the consequences set forth above.
When do I have to make the purchase?
At the latest, on the expiration date of the pre-SPA, but if in the meantime you received from us a binding loan offer at the costs initially presented, for a loan value that fully covers the price difference, you are required to complete the purchase on that date. Accepting the loan offer from the developer is not mandatory, you can choose from which sources you want make the payment.
How is the rent established and how is it updated according to Euribor?
The rent level is established based on a yield accepted by the developer, which is communicated within the lease agreement. This yield has a fixed component and a variable component – Euribor 3 months.
The value of the rent will be recalculated at the beginning of each quarter according to the fluctuation of the Euribor 3 months reference index. Thus, at a 1 basis point increase (0.01%) of the Euribor 3 months value, the rent value will register an increase between 0.12% and 0.15%.
Are there any other costs besides the monthly rent during the rental period?
Yes, the tenant is responsible for paying the costs of managing the home, including the metered utilities, as well as the costs of property insurance and property tax. These costs are billed separately from the monthly rent.
Can the pre-SPA be assigned?
Yes, this is possible with the prior consent of the developer.
Can I sub-let the house?
FlexAssist is intended exclusively for people who purchase and use that property as their primary residence, therefore subletting is not possible without the prior consent of the developer.
What is the loan repayment period for the loan offered by the developer?
The direct loan from the developer is granted for a maximum period of 30 years, from which the rental period is deducted. For example, if the total lease period was 6 years, the loan from the developer will be granted for a maximum period of 24 years.