Clapper takes equity stake in Viva Costa
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Michael Clapper - the ex-founder and group chief executive of Enterprise Group - has acquired an equity stake in Viva Costa International Mortgages.
The investment is being made via his newly created investment vehicle, Clapper Ventures LLP.
Other members of the LLP include Jo Dempsey - Enterprise’s former chief operating officer, Mark Davies - former legal director and howard wallis - former finance director.
Enterprise Group and its subsidiary companies Enterprise Broker Services and Edge v2 were placed into administration at the end of 2009, but Enterprise Finance continued trading.
Viva Costa International was formed in 2005 and assists advisers and their clients with overseas mortgages and property sales, with offices in the UK and Spain.
Viva is appointed to the panels of many of the UK’s major adviser networks including; Openwork, Home of Choice, Positive Solutions and MortgageNext.
As well as being an investor in the firm, Clapper will also work as an adviser.
He says: “I believe the market for overseas mortgages and property sales is set for significant growth. Very low interest rates from overseas lenders - who are both willing and able to lend - coupled with some exciting investment opportunities in countries such as Cape Verde, make an attractive combination in the current climate.
“Adrian and his team have done an excellent job in establishing Viva Costa as one of the most respected brands in the sector, with extensive secured distribution and an attractive Franchise model which has already gained significant traction.”
In November 2009, Viva Costa launched a Franchise model, allowing franchisees to provide a localised service to brokers across regions in the UK. There are nine live franchisees with a further five going live this month.
Clapper adds: “Many clients with existing overseas mortgages can save a small fortune with a remortgage today, so all brokers should be exploring these areas with their clients if they are not already doing so. Viva Costa’s service proposition delivers easy access to what is a complex market.”
Readers' comments (6)
I love coffee | 5 Mar 2010 12:05 pm
I would suggest there is more pup then potential in this venture in the next 36 months.
Spain for the moment is bust and as for Cape Verde........mmmmm. nuff’said.
In short any interest in Costa should be limited to coffee?
OK, so I might be wrong, if so best of luck, especially if you are considering buying into the 'attractive franchise model'.
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Adrian Holland | 7 Mar 2010 7:15 pm
It is clear that the above comment does not come from any kind of expert - except perhaps on coffee.
The Spanish investment bubble has of course burst, but there are still significant opportunities there for advisers and their clients. We are doing significant volumes in Spanish remortgages where available rates start at just 1.88%. And for those wishing to buy or live in Spain the crash has left behind much cheaper holiday or retirement homes for purchasers.
As for Cape Verde, you say "nuff said". Whilst that is very informative, it might also be useful to hear why - in your obviously expert opinion - you do not believe this country is an opportunity worth exploring further, when many experienced others have done?
Your comments make it clear that you only look at pictures and headlines. Perhaps you should wake up and smell that coffee you love so much?
Adrian Holland
Managing Director
Viva Costa International Mortgages Ltd
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Heather Chambers | 8 Mar 2010 12:09 pm
Your previuos commentor might not have any experience in Cape Verde but I do. I also have over 500 million on the books in Spain and have been active here since 2002.
He is I am sorry to say spot on with Cape Verde; lending is a disaster and I speak from bitter very unprofitable experience even from before the credit crisis. Most buyers are trying to extract themselves and the lending facilities; if you can access them; are poor not only for clients but for brokers trying to arrange them. 1 year to get an offer is not cost effective for any Franchisee.
On Spain we like yourselves are seeing better business levels and re-mortgaging last year kept us afloat however I would not contemplate opening a Franchise in current environment and am only still in the business because I have managed to survive the worst and have many years experience and strong bank relationships.
Our biggest challenge this year aside from the obviuos which is banks remain nervous and very tight on criteria despite what Mr Clapper may say is that the banks will become the main competitors for selling of property and will offer mortgage terms to clients buying their own stock that you will not achieve if you are buying something they do not own. These loans are being offered without any bank fee and with no payment to Brokers so it is difficult to see how you will make enough money to satisfy the network introducers, the Francisees and still make money as a company. I think any Francisee will be sorley disappointed at income streams achievable.
You only have to look at all the lenders websites to see this happening. It is no secret the banks are blatantly marketing it.
It is not your aims I disagree with but I think your timing and veiw of the current and medium term market is completley wrong. Back in the good old days of high volumes many companies including big investment funds like Oakwood tried and failed losing large sums of money; they were no mugs they saw an opportunity but did not realise it is very, very diffcult to make profit in what is ultimatley a very disperese and volatile market. The only money I can see being made is the money taken from Franchisees.
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Adrian Holland | 9 Mar 2010 10:53 am
Hi Heather,
I am pleased to hear that remortgages in Spain are also a strong area in your business.
You are quite right to point out that securing funds in Cape Verde has been extremely difficult in the past, but one of the reasons that Viva Costa now sees Cape Verde as a significant opportunity is because these issues are no longer a concern for the clients and introducers to Viva Costa and its Franchisees. In short, we have secured exclusive funding lines and service guarantees, with mortgage offers now typically received in just 2 to 3 weeks. All our lives have been made a great deal easier as a result, as I’m sure you can imagine! Should your business require access to these funds please feel free to contact me directly.
In answer to your queries regarding our Franchisees - a Franchise with Viva Costa provides dedicated services, exclusive funding lines, access to unique property developments and other significant opportunities that are not available elsewhere - I’d be very happy to discuss these benefits with you in more detail off line – please let me know. My email is adrian@vivacostainternational.com
Adrian Holland
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Chris Rowell | 9 Mar 2010 2:09 pm
As a Franchise owner myself - I am in a position to give comments regarding the potential with Viva Costa.
There are many clients who have mortgages abroad having purchased a property overseas - I am now directly and indirectly (via a number of mortgage brokers and IFAs) helping them to reduce costs by re-mortgaging those properties.
Additionally, the developments they have in Cape Verde are proving to be excellent investment vehicles and can work as an alternative to a normal pension.
Before getting involved with this Franchise I conducted a considerable amount of time and energy to complete my own Due Dilligence as I have experienced other un-reputable companies in the past and I know what problems can arise.
Before I made a decision I found out all the Facts - all i can say is if you are going to make a decision or comment (I always tend to ignore the anonymous ones anyway)then do your research personally - dont rely on what others say and see it for yourself.
Make a decision based on Facts, not Heresay...
I have many very happy clients who are very grateful for the opportunity that Viva Costa has given them, I can also say that I am also very happy that I got involved...
Chris Rowell (Franchise Owner)
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Bill Wood | 12 Mar 2010 12:50 pm
I am part of a financial services practice which, until two years ago, focused solely on UK mortgage, protection and G.I. business
Whilst we have survived the economic downturn intact, and continue to generate good revenue streams through "traditional" financial services business, we recognised the need to diversify at the first signs of the UK mortgage and housing markets stalling.
Becoming Viva Costa franchisees has presented us with many opportunities for overseas mortgage and remortgage business and, crucially, has bolstered our overseas property sales revenue considerably.
As a business, we have enjoyed great success in the overseas property market; not in Spain, Bulgaria, Dubai or any of the other usual suspects, but by carefully selecting reputable, financially robust developers with market-leading investment propositions.
To reiterate Chris' point above; conducting your own due diligence and, more importantly, engaging professionals to do so on your behalf, is essential prior to determining which overseas propositions you will market to your clients.
If you undertake this exercise in earnest - and with your clients' best interests (as opposed to your bank balance) at heart - very few overseas propositions will meet the benchmark criteria appertaining to an investable development. However, eventually some diamonds will be unearthed.
Viva Costa and the developers it represents constitute just such a find for our business and I'd be delighted to provide anyone - including "Coffee Man" - with further details about why we are delighted to be part of the VCI brand.
As an aside, I think Heather makes a partially valid point in saying that Banks now constitute "competition" in the overseas property market place. However, as liquidity gradually returns to the markets, many financial institutions will stick to what they do best; agreeing lending terms with developers who have in place the infrastructure to guarantee effective routes to market for effective products.
Viva Costa and its associated developers have these agreements in place and we as a business – and our clients as investors - continue to benefit immeasurably from our relationship with them.
Bill Wood
VCI Franchisee
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