We’ve been working on something in the background in the last year and this product which falls under the ‘alternative investments’ bracket is something we will have absolute exclusivity over in the open market. We’re really excited about it and hope to release some further news in the next month or so. Whilst it is still property related, it brings a new dimension to property investment and will require a more hands on approach from the employees of the investment. As a teaser, we can confirm the following:
i) It will be a product that will offer a rental guarantee for 15 years
ii) The guarantee will be underwritten by a government body
iii) The net rental yields on offer will be between 6.5% to 7%
iv) The product is an investment property, with full title.
v) It is looking likely that we will be able to offer in excess of 60% LTV bank finance through a preferred lender who we are in discussions with.
Alternative investments with an 15 year income guarantee
We think this alternative investment will be suitable to clients that are happy with a stable 7% net yield over a 15 year period which should really include most investors! An initial provisional criterion is a minimum investment of £200,000. This could admittedly rule out a number of investors who have lower cash reserves, but we may have a workaround solution to this for some clients.
In any case, we hope the above 5 bits of information have made you curious. We must apologise for the levels of ambiguity in this newsletter, but since we have not finalised the contract, we cannot reveal too much. We promise to try and be more transparent in the next newsletter!
Tell me more about alternative investments related to property
If you’d like to be kept up to date with this new release, then please register your details and we’ll be happy to inform you as and when we have reached the next developmental stage of this product.