Tjornhus Model



Development Model



We service the full investment umbrella and cater in the whole for the individual needs of the investor - from the corporate company, housing association, asset management company, landlord to armchair investor.


Whilst our Investment Portfolio Model delivered by Tjornhus aims to deliver what we consider to be the perfect platform for the Landlord/Investor and breaks with historical traditions and myths in regards to land lording. Our proposal is to purchase the freehold land by way of an SPV (Limited Company) and proceed to fixed unit supply contract agreement’s, that would exit as a turnkey development.


The costs would be ring fenced through our initial negotiations and quotations to protect both the build out timelines and development budget. Should the contractors not adhere to or deliver on time, then financial penalties would be implemented, protecting your status to the project.


The Turnkey development would deliver a purpose built Tenant Portfolio by way of either apartments or housing that would break with tradition and favour the tenant!



Why favour the tenant?



We believe this is the way the rental market is going, directly driven by both local and Central Government. By utilising our model, we genuinely believe will put our Investor/Landlords at the fore front of a new rental era. But more than this, we believe our model will also address two major problem areas for current landlords – One being operating and maintenance issues – which are well documented in the industry. We would advise that –


  1. Our units on the whole are electric supply only and fitted on construction with photo voltaic panels installed on the roof which offer a reduced utility bill for the tenant (that could be included in the rental) and hopefully a further income for landlord (this said we have no knowledge at present to advise the sale back to the grid of surplus energy and urge interested parties to research this themselves to avoid misunderstandings in this ever changing marketplace) - but moreover avoid all issues with dodgy gas boilers. Incidentally, as we all know, gas boilers and wet heating systems will be phased out by 2025 so by having no gas on site we are future proofing any required investment or conversion works.

  2. We would suggest the construction of a laundry to the rear of the block (in the case of apartments) and installation of coin operated industrial washer/dryers which will eliminate washing machines in the apartments. This again resolving the leaking/flooding problems of these machines culminating in the annual issue of so many landlords - flooding through ceilings. Furthermore, again this will offer the opportunity of further income for the landlord should they wish to take advantage of this.

  3. Although we do offer a full bath and shower in the family bathroom, we suggest installing a full wet room as an alternative to simply prevent against flooding, in our houses we offer three bedrooms with master en-suite – again giving the security to the tenant of sustainability and longevity to their tenure.


Make Sense



We believe that you will agree our model is starting to make sense and hopefully the picture of a limited stress free land lordship is starting to emerge. In addition to the above we recommend staying with our proposed floor plans, as we feel these give a potential tenant both the comfort of space and of course room to expand. In the case of apartments we build two beds, when of course one bed would suffice.


We all understand another major issue for landlords is voids in rental streams. Therefore providing all the above in addition to allowing a decent durable finish to the block, providing the opportunity to extend occupancy having the two / three bedrooms, offering security in both CCTV and keypad door entry and implementing good landlord practises, should in our opinion extend the current expectancy of a tenancy from a short term six month stay, resulting in continual turnover, to a sustainable long term tenancy as previously mentioned. This resolves a major obstacle for landlords which is voids. Central Government are keen to promote longer tenancies to give tenants the same expectancies as homeowners – that is the security of tenancy so that they can plan for the future – family, schools, etc. In most of our opportunities we instruct the Letting Agent to offer mainly five year contracts, where practical to comply with Central Governments directive in this matter.



And Finally...



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.
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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.





Edward Albert House, The Pavillions, Ashton-on-Ribble, Preston. PR2 2YB


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