HOW IT WORKS
Firstly, the seller of the property or item chooses their minimum selling price and we upload their competition listing.
Each person entering the competition pays an entrance fee of just £1 (or the entrance fee detailed on the competition listing) and answers a competition question. Entrants can also enter for free by post.
If the revenue raised from the entry fees is sufficient, the item is given as a prize to the competition winner and item seller receives their selling price from ticket revenue.
If the revenue raised from competition entries is not sufficient, the winner of the competition receives the Prize Fund in cash and the seller retains the item, as well a 1% share of the ticket revenue.
For property listings, we allow for the Stamp Duty (even if you have to pay a higher rate) and a solicitor's fee contribution within the prize fund.
After the prize has been allocated (either cash or the item), we donate 20% of the remaining revenue to
Shelter UK.
Simple, right? Check out our examples below to see how property listings work.
EXAMPLE 1
1. A seller lists their property and decides on a minimum selling price of £400 000.
2. The ticket revenue for the Competition
comes to a total of £650 000.
3. A winner is selected at random from the correct entries.
4. We calculate 80% of the ticket revenue
(80% of £650 000 = £520 000).
5. Before the property is given as the prize, we make sure £520 000 is enough to pay:
The minimum contribution of £1500
to the winner's conveyancing fees
(£1500)
The allowance to cover
the stamp duty due*
(£15,259.26)
The Prize Fund (is what's left at least
equal to the Minimum selling price?)
(£503,240.74)
In this case all three costs are met - the property has been won.
The seller receives £503,240.74. The winner receives the property.
20% of the remaining revenue is donated to charity (£26,000).
*Examples based on our calculation of rates of stamp duty at time of publishing. (We assume higher Stamp Duty rates are due). See Terms & Conditions
EXAMPLE 2
1. A seller lists their property and decides on a
minimum selling price of £300,000.
2. The ticket revenue for the Competition
comes to a total of £280,000.
3. A winner is selected at random from the correct entries.
4. We calculate 80% of the ticket revenue
(80% of £280 000 = £224 000).
5. Before the property is given as the prize, we make sure £224 000 is enough to pay:
The minimum contribution of £1500
to the Winner's conveyancing fees
(£1500)
The allowance to cover
the stamp duty due*
(£6480.58)
The Prize Fund (is what's left at least
equal to the minimum selling price?)
(£216,019.42)
In this case all three costs are NOT met.
The prize fund of £224,000 is provided to the winner in cash.
The seller retains their property and receives £2800 in cash (1%).
20% of the remaining revenue is donated to charity (£11,200).
*Examples according to our calculation of rates of stamp duty at time of publishing and assuming higher rates due to owning more than 1 property. See Terms & Conditions (6)
Thinking of listing a competition with us? Find out more.
FrogHoppingTM THE FUND-RAISING COMPETITION PLATFORM!
