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Key selling points
- Cash back on completion
- Only £9,950 deposit - 2 instalments - NO FINDERS FEE
- Fully Managed
- Guaranteed 12 months rental
- £15k off plan discount
- Excellent city centre location
Situated alongside an already established business community this will add a much needed facility to the area. The area has a substantial business base but lacks good quality office space for both large and small tenants.
The units offer our clients a unique opportunity to invest into the commercial market and enjoy the returns and rewards it has to offer. We understand that our clients require the very best in all the key areas of property investment. The correct location is a major factor in any property investing decision, and if you add our excellent build and finish standards we believe you will be on the right track to a successful property portfolio.
It is our aim to take as much pressure away from you as possible; therefore we provide an after sales service that is second to none. We will fully manage the development making sure it is let as quickly as possible; in most cases this is in advance of completion.
The workspace offers tenants:
• Premier office space accessed through a striking reception area.
• A fully staffed reception area.
• Office suites available in 500 sq ft units or multiples there of.
• Excellent natural light to all offices and equipped with LG3 lighting.
• Energy efficient heating system with air conditioning option.
• Lift access to all floors
• 24-hour access with full security system.
• Network connection capability to all suites.
• High quality communal WC, shower and kitchen facilities.
• Bespoke furniture/hardware packages available.
• Straightforward 4-page lease with agreed breakpoint.
Our first site in Padiham has been fully let since it completed 6 years ago. There are a variety of business’s located at this Business Centre ranging from telecommunications and childcare to a solicitors firm who have taken half of the ground floor and adapted the space to create there own office layout with reception area.
Office suites/ buildings like this are already popular and increasing in popularity as town centres and city centres become more congested, businesses feel the need to re-locate to be in a more desirable location that is also more easily accessible.
The Business Centres are a superb investment vehicle for the future which may be used as a pension plan should they wish to do so.
The suites cost £ 99950 off plan with a market value of £115,000.
E.g. a typical purchase would initially cost around £10,000.00, working over a 15-year period then the following rents should be achievable depending on the location you choose:
• Year 1 – 3 £550 - 600 PCM,
• Year 3 – 6 £700 -750 PCM,
• Year 6 – 9 £850 - 900 PCM,
• Year 9 – 12 £1000 - 1050 PCM,
• Year 12 – 15 £115 -1200PCM
After year three the rent review would add £150 PCM to each unit. Therefore every three years you gain an extra £150 PCM positive cash flow per office suite.
Offering luxury managed and fully serviced offices, these superb
developments provide an absolutely unique opportunity for clients to invest in off-plan commercial property, in a regeneration area, which is set explode in terms of growth, investment, employment and business opportunities. The key to investing in regeneration areas is to identify an area which will undergo positive change – examples include; infra-structure improvements, new jobs, expanding populations, expanding local economy, services sector and big investment projects.
Traditionally, to buy into commercial property, you need a cash deposit of between 25% and 50% for any purchase. Not so in this case. The deal is superb and provides a unique turnkey solution to commercial property investment. Here are the main features:
WHAT ARE YOU BUYING?
- 500 square foot office units in a Luxury Business Centre, pre-valued for
mortgage purposes at £115,000 with a £15,000 discount.
- £100,000 net price, so an immediate £15,000 of Equity is therefore
built in.
- Over two years until completion, so plenty of growth potential during the
build period.
- You don't need to choose a specific unit but may do so. This is almost a commodity purchase. All units are all identical and they will all be let on minimum three years leases to a tenant who has been found for you.
HOW MUCH CASH IS REQUIRED?
- 10% Deposit required on the net price = £10,000.00.
- £ 2000.00 upon reservation remaining balance in 30 days.
- Legal Fees = £500 (approx).
- Total cash investment projected = £ see attached spreadsheet.
- No stamp duty.
- Mortgage fee is inclusive if using recommended broker.
WHEN DO I NEED TO PAY?
- £2,000 is required immediately.
- £8,000 is required in around 30 days time.
- Legal fees will be due a few months before completion.
- A commercial mortgage can cover the balance.
WHEN IS COMPLETION?
- Building work will commence in December, with anticipated completion 18
months later, so around July 2009.
HOW DO I FINANCE?
- Commercial Brokers are offering mortgages at 80% LTV, so there should be no more cash to pay and the balance can be fully mortgaged.
- Currently, one 'interest only' commercial mortgage example would cost £487per month .
- Alternatively, in 15 years, a typical repayment mortgage would be paid
off, creating a projected £1,400 monthly income.
- Mortgage costs will vary depending upon the solution you choose. Our
recommended broker will assist you with this.
WHO MANAGES MY PROPERTY AND PAYS THE BILLS?
- We fully manage the business centers to maintain the high standard of finish on an ongoing basis, with guaranteed long-term tenants on full repairing leases.
- Tenants pay for business rates, utilities, service charges, furniture and repairs, not you.
WHERE DO I FIND TENANTS?
- Tenants are found for you by ourselves with anticipated rentals
starting from £ 550 per month to £650 per month depending on location.
- Apart from paperwork, this is a hands-off situation. You are the landlord but the whole thing is managed for you.
WHAT IS THE RENTAL YIELD?
- Guaranteed yield of 8% from time of completion for one year i.e. £8,000.
Thereafter, lease dependant with upward only rent reviews, typically every three years.
CAN I BUILD THIS PROPERTY INTO MY PENSION?
- This product is SIPP friendly and it can therefore be used within a self
invested pension, but you must check with your financial advisor first on
the logistics of this.
CAN I RE-SELL IN THE FUTURE?
- Commercial property can be sold at any time as a going concern. It does
not need to be vacated by the tenant.
WHAT ABOUT CAPITAL GAINS?
- Qualifying for full business asset taper tax relief means that 75% of any
capital gain is tax free. To qualify, you must own the property for at least two years and rent it out to a 'qualifying' business throughout your ownership. Most trading business tenants will qualify, but some will not i.e. large public companies.
WHERE IS THE LOCATION?
- This luxury business centre will be located in M8 just north of Manchester city centre:
Summary
• Luxury Office Suite (500 Sq Ft)
• Excellent Locations (J 31a M6 Preston, M65 Burnley, Speke Airport, M65 Blackburn and Manchester City Centre)
• Shared Reception and Board Room Facilities
• Ample Spacious Car Parking
• Price £99.950 off plan £114,950 market value (Instant Equity)
• Low Deposit 10%
• 80% Mortgages Available (See IFA for further info)
• 12 Months Rental Guarantee at 8%
• Long Term Lets (3 to 5 years)
• Quality Tenants
• Ongoing Rent at 8%
• SIPP Friendly (See SIPP advisors for full information)
• Tax Benefits (Taper Relief from 40% - 10 % after year 2)
• Fully Managed and Maintained
To fully understand the investment opportunity we would like to invite you to visit our offices in order that we can show you first hand both our operational site and the new sites under development which will unquestionably make your investment decision easy.
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