When you are exchanging currency to buy a property, unless you are yet to have an offer accepted, you need to make sure your funds are liquid, in the case of UK property, before you exchange contracts.
Our client was introduced to us by his property search agent. Commissioned to find a suitable apartment for our client's daughter, the agent thought to incorporate Prime Cap into the process because they knew we could improve the rate of exchange and ensure the somewhat rigid schedule for payments was met.
The client already had their funds in the UK banking system, but, they were denominated in US Dollar not GBP Sterling. Simply by identifying and undercutting the rate of exchange offered to the client by their bank, we ensured the client spent $69,419.72 fewer.
Using a tailored forward buying contract we were able to ensure that the client benefited from the same rate for the conversion of a 10% deposit payable on 'exchange of contracts' (often a mandatory requirement when buying at UK property) as was available for their completion payment some weeks later. Opting to use a forward contract meant the client could be sure their USD costs would not rise even if GBP were to appreciate in value.
The client's conveyancing solicitor was also known to us and so, with the client's permission, we liaised with their legal team to update them as to the progress of funds and clearance times, thereby ensuring all parties were informed appropriately and critical deadlines were met.