The only certainty in life is change. As we progress through life, our needs and goals evolve and with them, our property requirements. Like most matters of importance, property transactions are not straightforward or cheap and can take months to conclude. All too often, sellers are caught unawares by the expenses involved and the amount of time they have to wait for the proceeds of their sale, which can cost them in more ways than one. Enter Rodel Bridging Finance.
Rodel offers short-term bridging finance to sellers who are unable to wait for the proceeds of their sale, which can take three months (on average) to conclude. For a property to register at the Deeds Office, a seller first has to settle any outstanding municipal rates and levies as well as the conveyancing costs. Sellers also (typically) have to pay a deposit and transfer duties on a new property – all of which can add up to a lot of money within a short space of time.
Indefinite hold-ups
Samantha Daykin, Rodel’s PR Manager explains that for many sellers, such costs simply prove too much all at once, especially if other costs such as school fees, an unexpected medical emergency or car repairs come into play at the same time. Importantly, she points out that if any of the payments relating to the transfer aren’t made, the sale can be held up indefinitely.
“Since 2005, Rodel has met a very real need for bridging finance in the property sector. We identified a gap in the market for a financial provider that could advance funds quickly for a reasonable fee. Suffice to say our formula worked. Today, 80% of all applicants receive their requested funds within 24 hours which has expedited the sale of thousands of properties.”
Surplus proceeds from the sale of a property
Rodel can provide property sellers with up to 80% of the surplus proceeds from the sale of a property. Although this advance is typically used by sellers to fund costs related to the property sale such as arrears rates and the like, Rodel does not specify how the advance funds must be utilised.
Says Daykin: “With Rodel, there’s no catch and no hidden costs, and we are backed by two of the largest banks in South Africa. Clients are charged 0.15% per day which equates to R1.50 per R1 000 per day with a minimum 18-day period. When a client applies for bridging finance via their attorney, Rodel will need to confirm the full purchase price is secure and any suspensive conditions in the sale have been met.
Rodel also offers advances on estate agents' commissions and new, additional, or switch bonds. Personal and top-up loans are also available to homebuyers through their alliances with other business partners.
Legal partnership
Bruce Forrest, Managing Partner of Meumann White Attorneys which has long done business with Rodel says that the firm has always been impressed with Rodel’s efficiency and approachability. He adds that through Meumann White’s association with Rodel, the firm has been able to concentrate on, and enhance its core service offering.
One need only look at Rodel’s WTF (What's the feedback) page on its website to gain a sense of what clients think about the company’s services. If Craig and Joanne Lester* had known about Rodel, they would also have taken advantage of their services.
It’s real!
Explains Craig: “After 15 years in our home, we finally decided it was time to downsize. Given the long gap between property transactions, we were unfamiliar with the process and were unpleasantly surprised by the costs involved. At the time of sale we had run up some medical costs and were short of the conveyancing fees owed. We ended up having to borrow money from relatives which, although it was only for a short time, inconvenienced everyone. If we had known about Rodel, we would have contacted them immediately. At least we’ll know better next time!”
*Names changed for privacy purposes