Our clients have negotiated banking facilities which will, in return for deposits made to their account, provide a 4 times leverage in the form of Bank Bonds offering a yield of typically 5% per annum on the leveraged amount. The Bonds issued provide the capital guarantee of funds together with a yield.
This model releases funds for the purchase of property without charge or lien which in itself constitutes a further asset of the company in the form of a property portfolio. Finally properties are purchased at an average of 15 - 25% below market value thereby further enhancing the asset base.
UK BUY TO LET PROPERTY INVESTMENT
Our clients concept is simple but unique. They seek to access an established and well understood market, 'Buy to Let' property in the UK, using structured finance which releases capital for property acquisition whilst maintaining capital protection.
They seek to build a property portfolio of Buy to Let properties. In the first 12 months the portfolio value is targeted to be £50m, consisting of up to 500 homes. Whilst the average first time buyer price across the UK is £204,000. Data from the Office for National Statistics reveals that house prices vary across the UK.
In Wales the average price was £167,000, in Northern Ireland it was £137,000 and in Scotland it reached £193,000. Excluding London and the South East, the average UK house price was £201,000. Against this backdrop they will target homes at an average price of £100,000 but they recognise the fact that demand amongst the target tenants can often be for medium sized properties.
Each property, once purchased will be let on a 'rent to buy' basis'. That is to say the prospective tenants will be those wishing to rent the property with a view to purchasing it from them within 36 months. This model is not dependent upon the ability of the tenant to subsequently purchase the property but instead designed to enhance the likelihood of sale whilst at the same time maintaining a good source of responsible tenants.
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"We are very pleased with the deal offer to us! Thank you for being attentive and in tune to what we wanted. You are on top of the market. Thank you for your guidance, recommendation, sound advice, hand holding and hospitality throughout the whole process. We look forward to investing with you again.... "