Specialist lender Selina Finance will provide capital for the purchases with a multi-million pound credit facility backed by GFC and Picus Capital.
Selina Finance will be initially providing £2m over the next quarter. Emoov will test the scheme in certain areas across the UK before rolling it out nationwide.
If a property listed on Emoov does not receive an offer within 30 days, the vendor does not want to go forward with the offers it has or the chain breaks they can request an offer from Emoov.
The firm will decide if it wants to buy the property based on criteria which is shared with the seller. It will then use an automated valuation model to suggest the best price which the seller can accept or reject.
The offer will be up to 97 per cent of the property’s value, costing sellers three per cent of the price to sell to Emoov. The firm claimed this was cheaper than the 20 per cent charged by other quick cash buyers available to people selling their homes.
Stepan Dobrovolskiy, CEO of Mushroom, Emoov’s parent company, said: “Property chains are a pain for the UK housing market. Transactions fall through, people waste hundreds of millions a year on fees. The existing solutions capitalise on the huge distress that chains are causing to customers.
“This is also driven by the short-sightedness of service providers and the unavailability of data. Emoov is the first company to offer an affordable data-driven solution to facilitate the transactions.”
