Finally what our model also delivers in terms of investment for the Landlord/Investor (as mentioned previously by buying the land in an SPV) means that your turnkey development would also sit in the SPV thereby delivering a standalone Freehold holding SPV. We strongly advise that this is maintained unencumbered and liability free thereby giving the Landlord/Investor piece of mind that their whole operation and investment is ring fenced. By this we mean that should our Landlord/Investor wish to progress and retain a further block or row of town houses, then each acquisition will be retained in their own independent standalone Freehold SPV. The Landlord/Investor would operate these SPV’s from an independent limited company that would also sit in an SPV. This we believe is unique and currently only consulted on by Tjornhus.
This model provides the Landlord/Investor with a ring fenced piece of mind, that his business and investment cannot fail by falling into the historical “domino effect” should one of the blocks become compromised in any way. Ultimately building a Projected up-lift in Value within the Landlord Investment Portfolio, by way of Multi Independent SPV Asset Holdings and moreover a much Improved profit forming Operating Company - gaining Net Incomes, Ground Rentals and Service Charges thereby culminating in an attractive proposition for a future sale of the Landlord Investment Portfolio - whilst already having the security of a year on year profitable income.
This would allow the Landlord to execute a serious financial investment plan over either five; ten or more years and the tenant to plan their future with a piece of mind of a five year plus contract, again both meeting the Government mindset.
This also sits within Central Government ethos of where they see the New Style of Professional Landlords. That is that all Landlord businesses should be run as Limited Companies. The Government are already turning the screw on individual Landlords, by declining them the opportunity to claim work/development expenses against tax and raising the tax bar, where in contrast the Limited Company Landlord is being rewarded by way of the Government instructing HRMC to reduce Corporation Tax from 19% to 17% by 2020, making our scheme very attractive for the professional Landlord - precisely what both Local & Central Government are rolling out.