TV star behind business aiming to be UK's biggest est...

A new business which sets out to be the future of estate agency in the UK, with ambitions to be the biggest inside three years, is backed by the actress Lynda Bellingham.

It is tempting would-be franchisees with the prospect of earning £50-£60,000 in their first year. It is advertising widely on digital TV channels, with Bellingham as the face of the business.

Virtual Property World says that its virtual agents should earn over £50,000 per annum if they list three properties a week; over £85,000 for listing five; and over £100,000 for listing six.

Undercutting traditional agents by an average of £2,000 to £3,000 per transaction, it is being promoted on digital TV channels with ads featuring ‘Loose Woman’ favourite Lynda Bellingham.

Virtual Property World has ‘Oxo mum’ Bellingham on its own site saying: ‘Why pay an agent’s commission?’ when it will do the job far more cheaply.

Virtual Property World, which is based at Wrotham Business Park in Barnet, Herts, is offering consumers various packages to sell their houses, costing from £425 upfront to £995 payable on completion.

A premium brand, Nationwide Town & Country Estates, offers sellers of more expensive properties a service costing £3,000 plus 0.25% payable on completion. Both brands are available to franchisees for an all-in-one price of £12,000.

Virtual Property World is a ‘proud member’ of the NAEA and Property Ombudsman, has been accredited by the British Franchise Association, and advertises properties on all the major portals including Rightmove, Zoopla, FindaProperty and Primelocation.

Lynda Bellingham is a director of Virtual Property World and her husband Michael Pattemore is managing director.

Andrew Jepson, the commercial and franchise director, was previously an estate agent in Spain.

He said: “We don’t make any promises, but we do say that we offer our agents five different income streams and that if they list, for example, three properties a week, then they ought to be able to earn £50,000 a year.”

He said that Virtual Property World’s ambitions to be the biggest estate agent inside three years were not unrealistic. He said: “We have spent the last two and a half years building the most sophisticated back-office network for estate agents in the UK and probably Europe.

“We have the perfect product – but some education is required.” He added that the business is already proving it is selling properties 18% faster than average agents.

His boss, Michael Pattemore, has previously served time, in the nineties, in prison for fraud but Lynda Bellingham has always put this firmly and completely in the past, saying: “He was a small pawn in a financial scam. Michael has done his stint and it should be left to rest.”

His wife often refers to him as ‘Mr Spain’, and Pattemore first established his business model while working abroad. As well as selling homes, Virtual Property has a business transfer arm selling businesses.

In the brochure, Pattemore says: “European clients appreciate our low cost fixed price estate agency services and the money they save.

“Thousands of clients have used our services; the only difference dealing with European clients is that two sections of the company deal with property and business sales separately. In the UK we are using one branded name to service both market sectors.

“The UK is a more sophisticated market which will enjoy a greater product line up, and even higher service levels.”

The brochure says that the running theme of the web television advertising campaigns is humour “with Lynda in situations ridiculing traditional estate agents’ fees … Lynda will also tour the country promoting franchisees and the property listings they have for sale”.

The ‘multiple income streams’ open to franchisees include EPCs, viewings, and referral fees – for example, from conveyancing and mortgages – plus an annual efficiency bonus.

The terms of the franchises seem extraordinarily generous. According to the brochure, franchisees are paid an advance of 80% of all listings, on receipt of instructions from clients.

The brochures says: “This alleviates the normal industry cash flow problems and provides franchisees with a constant income stream from day one. Franchisees are paid immediately and don’t have to wait for payment.”

The £12,000 upfront cost means nothing more is payable, according to Andrew Jepson, although franchisees are expected to contribute £250 a month to a marketing spend. He said that at the end of year five, Virtual World takes 10% of income made in that year.

According to Jepson, there are already 15 franchisees, including some in training. All must sit NAEA exams before they will be allowed to sell houses. 