UK purchasers of overseas property will now be able to use a deposit guarantee instead of a cash deposit after Casualty & General Insurance expanded their product range to include overseas property purchases.

A deposit guarantee can be used by a property buyer as an alternative to paying a cash deposit to the vendor at exchange.

Grant Bailey, C&G spokesperson said: “C&G have taken the view that the overseas property market has specific areas that have recovered from the events of 2007 & 2008 and have since been performing positively over the past twelve months. We believe it is therefore a good time to enter this market with our product.

“The product is for asset rich and cash poor purchasers. It saves the purchaser tying up cash for extended periods with the developer and therefore provides an incentive to commit to buying the property now.”

The deposit guarantee can be used to provide up to 30% of the usual cash deposit required by vendors at exchange. However the insurer does not provide the cash to the vendor at exchange but rather a legal guarantee that they will pay the developer upon demand if the purchaser does not complete on the purchase.

Each buyer had been pre-qualified on their ability to complete the purchase, which provides comfort to the vendor.

Bailey said: “Agents and Vendors want completions, so to know the buyer has been financially vetted by a third party prior to committing to the purchase gives them comfort. The deposit guarantee is not for everyone but our initial response from the overseas property market has been positive. Agents and Developers know they have to look at all possibilities to assist purchasers and make it beneficial for them to buy the property.”