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Prime London Resi: a lot can change in 14 days.

Whilst we do a lot of work with foreign nationals buying property in the UK with capital brought in from abroad, one of the areas commonly overlooked is the change in the foreign currency value of the UK property you might be selling.

Between accepting an offer on your London property and the date of completion, the foreign currency value of the asset can change dramatically.

An example of this is a recent instruction take by our brokers:

We were invited to present our services to the vendor of a property who wished to take receipt of the GBP proceeds of sale for the further exchange of those monies in to Swiss Franc.

Between initial offer acceptance and completion of the transaction the rate of exchange moved by mere singular percentage points, but, given the size of the transaction in question this movement translated in to a loss of nearly CHF 150,000 in value.

We appreciate that many operating in the prime residential space in London are eager to protect the structure and progression of a deal/sale and that incorporating a third party currency brokerage in to the mix could be perceived as a risk...diluting the strength of the agent's connection with a client...but, for the sake of the sizeable sums that can be protected, close working arrangements with a currency broker can serve to fortify the relationship rather than undermine it.

High Net Worth Individuals and families tend to operate in more than one country.

One might therefore assume they are equipped with all the relevant advice and guidance that compliments and enhances the ease with which they might operate in those countries.

However, in our experience, the age of the personal (DIY) currency services sector means that the solutions our sector can offer tend to be overlooked.

Our engagement with clients usually extends beyond the initial exchange of capital.

We become an ongoing and useful solutions provider whose value exceeds the scope of the initial improvement of the rate of exchange.

Imagine if you will, your client sells in London and repatriates proceeds...

Having introduced them to a broker you know, like and trust means that your connection to that client goes beyond the transactional....

When the client looks to revisit their UK property activities, our connection to them can very well serve as a tether bringing that client around to your role and value again...

With the staggering proportion of properties valued over £8million being bought and sold between a global elite of affluent participants, the inclusion of an understanding of the currency position should, rightly, form more than just a passing part of your discussions with your client.

This is what Prime Cap exists to support.

For a more detailed discussion we invite you to call our broking team on 0203 172 8193.

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