FAQs - General
FAQs - Costs and Valuation
FAQs - Mortgages and eligibility
FAQs - Exercising the option
FAQs - Obligations for each party

Mortgage and Eligibility FAQs

Will a Cenoption affect my mortgage?

Any mortgage or other charge on the property will not affect the product or how it works. You are free to settle any charges against the property at any time before exercising your Cenoption, however upon exercising your option Centrila requires clean title and vacant possession of the property. As part of the standard conveyancing process, upon your Cenoption being exercised, any outstanding mortgages or charges secured on the property would normally be settled and cleared from the proceeds of sale when Centrila buys your property.

Is my property type suitable for a Cenoption?

All Cenoptions are available across most types of residential property, be they owner occupied or buy to let investments. A property split into multiple flats will be considered as long as the building only has one freehold title. Leasehold properties require a minimum of 90 years or more remaining at the point of application, although exceptions to this can be considered within London. Commercial properties, including flats above shops where only one legal title exists, are currently not acceptable.
 
Can I use any Cenoption with off-plan properties?

Yes - however there are a number of important facts you need to consider. You can only exercise your Cenoption within the allowable exercise period AFTER the off-plan property has been granted either a NHBC Certificate or a Zurich Building Guarantee. If the property will not have either of these please refer to your Broker to see if the property will be acceptable.

Who can benefit from a Cenoption?

All Cenoptions can be taken out by an individual, limited company, trust or indeed any legal entity. However, at the point of exercising your Cenoption, your solicitor will need to be able to confirm you own the property and have the right to sell it to Centrila. Those who are currently bankrupt, or in the process of going through bankruptcy proceedings should not apply for any Cenoption as they will not be able to demonstrate ownership should they wish to exercise their option in the future.

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