| PROPERTY LETTING CONSORTIUM |
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This is a new scheme that we are about to launch. The idea being, that it may be better to share your property rental portfolio with others so as to share both the Low's as well as the High's and therefore share the risk. It will be ideal for those with a small rental portfolio, or anyone just starting off in the property letting business. If you have just one property and it becomes vacant, then you effectively loose 100% of your income, but if you had four properties then the loss would be reduced to 25%, or with 10 properties only 10% and so on. Therefore by joining forces with other Landlords you can effectively spread the risk and reduce your losses if a property is un-let for a period of time. Also it is likely that all properties will attract different yields so you could gain by the averaging income if one or more properties returns a higher yield than one property you may own individually. A holding Company will be formed for the consortium, each having an equal share holding. So if for example, four people joined they would each have a 25% share holding, and if each put in £80,000. and bought four properties each costing £80,000. the total company share value would be £320,000. The income from all properties would be equally shared amongst the shareholders. So if one property or more became empty then the loss of income would also be equally shared. If any one shareholder wanted to sell, then it would be up to that person to sell their shares. The portfolio would be valued, so if it were now worth say £420,000. then a 25% share would be valued and sold for £105,000. making a capital gains profit per shareholder / the shareholder selling, of £25,000. The new owner would still only hold a 25% share stake in the company. The Company value / the share value would depend on the market value of the properties at the time the shares were sold. This scheme could be applied to both Residential and Commercial Properties. Anyone interested in forming a consortium should e-mail or phone us at: ( Due to our SPAM filter please write PROPERTY CONSORTIUM in the subject line.)
ELLIOTT PROPERTIES P.O. BOX 46 HESWALL WIRRAL CH60 9LR. TEL: 0774 788 8181 |
