Flemings put house on new bond

A new painless way of paying a house purchase deposit, called an Exchange Bond is a feature being introduced by builders Fleming Construction.

It kicks off right away in their Ard Aoibhinn scheme in Cork’s Innishannon, homeplace of writer Alice Taylor, where the first phase is due for hand-over to buyers in August, so families moving in can go to school through the, eh, site.

The bond is also being introduced in Fleming’s schemes elsewhere in Cork, in Dublin and in Waterford, says company director Vincent O’Donovan.

The concept, which effectively removes the need to pay a deposit or pay bridging while waiting for a house to be finished, is relatively common in Britain, but is hardly used in Ireland, until now.

A form of financial guarantee (executed with the Exchange Insurance Company Ltd) it’s a substitute for the cash deposit, normally given by buyers at the time of exchange of contracts in residential house purchases. A typical cost on a €350,000 house, requiring a deposit of €35,000 and with a six month gap between contract and closing, is approximately €1,485, so a buyer can leave their money on deposit earning interest while they finalise their own financial dealings.

Flemings agree to accept the bond instead of a cash deposit and, as part of its marketing promotion, say they will refund this premium in full on completion of the contract. The promotion is in place for 12 months.

To date about 20 sales are secured.

Construction is well past the half-way mark for the scheme which has four-bed semis of 1,830 sq ft selling at €650,000 (down from an initial launch of €680,000). Two remaining 1,500 sq ft four-beds are €570,000 (down from €610,000) and three bed semis are €395,000 and €365,000, each down about €30,000.

Standard features include very high insulation levels, thanks to Flemings’ Fusion steel frame build technology, concrete floors at first floor level, fitted kitchens, decoration and fireplaces fitted, TV and phone data points in all rooms, central vacuum, Nordic pine windows, and some houses/sites have stepped gardens with raised decking. Other features are slate roofs, brick-paved drives, the detached houses have solar panels and audio distribution systems for entertainment options, while garden sheds with power supplies and compost bins come with each house.