HOMEProperty Investment Fees
The key investment terms and structure relating to our investment fund are as follows:
- minimum investment: £100,000
- 1% initial fee, 1% annual fee, 20% performance fee in excess of achieving the UK base rate
- maximum gearing 70% loan to value of property and 1.5x interest cover
- unauthorised investment in the shares of a BVI domiciled private company
- term of investment: 8 years (30 Sept. 2017) with redemptions only on a matched bargain basis
Property Management Fees
We are willing to discuss structuring our fees to include a significant element of "performance" related fee dependent on the landlord achieving a return in excess of an agreed hurdle rate over an agreed investment period.
In addition, our standard fees indicated below can be discounted for landlords owning more than five properties.
Our standard fees are as follows:
- Property sourcing: we don't charge for this service if we manage your property
- Property management fee: 15% of the total rent for the tenancy plus VAT subject to a minimum management fee of £600 per property per annum plus VAT ("the Management Fee"). The Management Fee is calculated over the entire fixed period of the contract and payable in advance by monthly standing order. The fee is payable whether a property is tenanted or not. The Management Fee includes normal levels of administration of repairs and maintenance. Minimum term of contract is two years.
- Management of major works: Hibridge Capital will supervise works outside normal property management duties e.g. structural repairs, renovations and redecoration. The project management cost for undertaking this work will be determined based on an estimate of time necessarily spent and at a charge out rate of £30 per hour. We are happy to discuss a fixed fee based on a predetermined scope of major works and including an incentive fee to complete the project within budgeted cost and time. The cost of any such major works must be repaid directly by the landlord to Hibridge Capital upon request. All copies of invoices will be provided to the landlord.
PROPERTY INVESTMENT