WHAT IS SHARED PROPERTY INVESTMENTS?
Many people with some money to invest are disappointed with the returns available from High Street deposit accounts or traditional investment funds. There are many who wish to invest in property, not through a large property company or property fund, but in a specific property in which they have had some measure of choice in its selection and control of its management. However, many find difficulty in doing so as a result of which Shared Property Investments LLP has been set up to assist.
Shared Property Investments LLP (SPI) specialises in providing opportunities to invest from about £5,000 upwards in a specific commercial property investment yielding 7%-8% p.a. net of purchase and management costs, payable quarterly in advance.
SPI was established in 2013 as the investment arm of Maunder Taylor, a member firm of the Royal Institute of Chartered Surveyors (RICS), and benefits from the valuation, market and management skills of that firm.
SPI finds a suitable commercial property investment, investigates the property, the title and the tenancy and, subject to satisfactory results, exchanges contracts to buy the property. Relevant details with an analysis of the costs and returns are then circulated to the list of investors registered with SPI.
Those who agree to invest before completion of SPI’s purchase of the investment have the opportunity to invest at cost. After completion, SPI reserves the right to increase the investment price. The purchase is registered in the name of SPI which holds the property on trust for the investors.
When any investor wishes to sell, they can introduce their own purchaser or SPI will circulate details of the shares being offered to SPI’s registered investors and find a purchaser.
SPI keeps those investors on its register informed with quarterly bulletins, occasional evening promotional meetings, an annual conference in February, and additional consultation notes as and when required.
Investors in a particular property receive advice from SPI/Maunder Taylor when required but retain control of the decision making. This is not therefore a collective investment scheme registered with the Financial Control Authority (FCA), but Maunder Taylor is regulated by the RICS, carries professional indemnity insurance and has a complaints handling procedure.
Here is How it Works:
A commercial investment is identified. Enquiries are made, an inspection is carried out, and documentation is checked. We have a detailed check list of the matters to be considered.
When a property investment is still deemed to be suitable after this exercise, an offer is made and, if successful, contracts are exchanged to buy the property. The contract is in the name of the Partnership.
Any person who wishes to invest is invited to return the participation application form with their relevant details and payment which must be received before completion of the purchase. That payment is received into a client account of Maunder Taylor, Chartered Surveyors and is therefore protected by client account status. One or two days before completion, the monies are passed over to the Partnership's solicitors for completion of the purchase.
Shared Property Investments LLP becomes the registered owner, recorded as such at the Land Registry. Each part-owner receives a Trust Deed stating that they are the beneficial owner for their part share of the property. A standard restriction is registered at the Land Registry, noting that the property is held in trust for the investors, and protecting the investors as the individual beneficial owners.
A management contract is entered into with Maunder Taylor, Chartered Surveyors to professionally manage the property. The part-owners are entitled to change the managing agents by majority vote at any time subject to the contractual notice period.
Rents from commercial properties are normally paid quarterly in advance. The managing agents will issue rent demands and account to the Partnership after deducting management and company expenses. The Partnership will calculate the sum due to each part-owner, make payment (usually electronically) and issue a payment statement to each investor.
If a part-owner wishes to sell some or all of their shares of a particular property, they can introduce their own buyer. Alternatively, they can inform the Partnership who will then issue details to all persons registered as present or potential investors, and invite offers for the seller to consider. Interested parties will be put in touch with each other for negotiation purposes.
For more detailed information about Shared Property Investments LLP, its charges and operating procedures, please DOWNLOAD OUR INFORMATION BROCHURE.
Financial Control Authority Present and potential part-owners are referred to guidance provided by FCA.org.uk – FCA Handbook – Perimeter Guidance Manual – PERG 11. The operation of this Partnership has been designed with the intention that all part-owners of a particular property have day-to-day control of that property investment such that it is considered by the Partnership that this is not a collective investment scheme. Nevertheless, Maunder Taylor will be seeking to extend their existing FCA regulated status (No. 312712) to cover their Shared Property Investments LLP activity.