An independent valuation must be completed 6 months before the 5th anniversary of the Vacant Possession at the Buyer’s cost. FundMyHome will appoint the valuer and provide the Buyer two months to arrange the inspection.
- The Buyer then makes a choice whether to stay on or sell the property on the open market and receive a share of the proceeds:
If the Buyer elects to stay on, he can refinance the property via FundMyHome. He may need to top up some funds to sustain a 20% share of the new valuation. Existing institutions may choose to roll over their contributions or sell to new institutions. Alternatively, the Buyer can acquire the 80% share held by Institutions, based on the valuation price, by using his own funds or via bank borrowings.
If the Buyer elects to sell the property, the property will be advertised for sale on the open market for at least 3 months at the valuation determined by the valuer. FundMyHome will administer this process and is obliged to act in the interests of Institutions to maximise financial returns.
It should be noted that if the property is to be sold on the open market, the process could take some time; a typical sales process is between 3 and 6 months. However, there is no guarantee of this as the sale could take longer, in which case the property should be vacated. If Buyer does not hand over vacant possession by the 5th anniversary, a rental rate will be charged (based on a 5% rental yield).