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DISCLAIMER:
Each investment is different, and PropertyIndex would strongly recommend you seek independent financial advice beforehand.
This is based on a Loan Note perspective - every investment has a different information memorandum.
WHAT IS A LOAN NOTE?
A Loan Note is a legally binding agreement which evidences the existence of a debt between a borrower (issuer) and one or more lenders (loan noteholder(s)) and the promise by the Issuer to repay the amounts outstanding under the Loan Note to the Loan Noteholder(s). It provides details such as the Loan Note amount, repayment dates and terms.
HOW IS A LOAN NOTE DIFFERENT FROM A LISTED COPRORATE LOAN NOTE OR GOVERNMENT LOAN NOTE?
Loan Notes are effectively a private borrowing agreement between a company and an investor that cannot be transferred to someone else. In contrast, retail corporate Loan Notes and government gilt-edged securities are freely tradeable instruments. Loan Notes are not protected by the Financial Services Compensation Scheme. While safeguards are in place, the FCA is very clear that every investor should be aware that their capital is at risk.
HOW IS THE INVESTMENT SECURED?
The investment is secured by way of a legal charge over The Property in discussion.
WHO CAN INVEST?
Any individual who is over the age of 18, or a trust, company, the retail sector or charity that is not prevented by the laws of its governing jurisdiction from applying for or holding Loan Notes.
Investors must also fall within one of the following categories:
(i) certified high net worth investors (as per COBS 4.7.9R);
(ii) certified sophisticated investors (as per COBS 4.7.9R);
We recommend all investors speak to an advisor who is authorised under the financial services and markets act 2000 and specialises in investments of this kind
WHEN DO I GET MY ORIGINAL INVESTMENT BACK?
All of your original investment is expected to be returned in full at maturity of the Loan Note.
CAN I INCLUDE THIS INVESTMENT AS PART OF MY SIPP OR SSAS?
The Loan Notes could be held in a SIPP and SASS wrapper that accept non-standard assets, however Investors will need to check with their pension administrators to confirm this.
CAN I INVEST AS A COMPANY AND ARE JOINT APPLICATIONS ALLOWABLE?
Yes, company investment or joint applications can be accepted.
HOW DO I APPLY
Investors can apply using an agent or direct using the reservation form provided. We recommend all Investors speak to an advisor who is authorised under the Financial Services and Markets Act 2000 and specialises in investments of this kind before any decision is made.
WHAT HAPPENS IF THE LOAN NOTES ARE OVERSUBSCRIBED?
Once the value of the Loan Note is reached, no further Loan Notes will be issued.
WHAT HAPPENS IF I CHANGE MY MIND?
We recommend all Investors speak to an advisor who is authorised under the Financial Services and Markets Act 2000 and specialises in investments of this kind before investors consider any investment as this is for a fixed term and not treated as a non-fluid investment.
You cannot cancel your application once you have signed the application form and transferred funds.
WHEN IS THE START DATE OF THE INTEREST CALCULATED FROM?
Interest is calculated from date funds are cleared and made available to the Company (and all KYC and AML documentation has been received).
CAN I SELL OR GIVE MY INVESTMENT TO SOMEONE ELSE?
No, the Loan Notes are non-transferrable.
IF I DIE WHAT WOULD HAPPEN TO MY INVESTMENT?
In the event of the death of a Loan Noteholder, subject to the discretion of Directors, sums may be paid out on maturity of the Loan Notes, after receipt of a valid death certificate to the estate subject to any legal or regulatory provisions.
WHAT TAXES DO I NEED TO PAY?
For all information about tax we recommend all Investors speak to an independent specialised tax advisor who is authorised and specialises in investments of this kind.
SHOULD I DISCUSS THIS INVESTMENT OPPORTUNITY WITH A FINANCIAL ADVISOR?
We recommend all Investors speak to an advisor who is authorised under the Financial Services and Markets Act 2000 and specialises in investments of this kind.
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