Select Ownership at Select Villages

Select ownership

Select Ownership Model

The main features of our Select Ownership model are:

1. Every cottage is owned on a 199 year lease upon completion by a limited company (‘SPV’- Special Purposes Vehicle);
2. The expected value of every cottage on completion has been assessed by an independent valuer;
3. The SPV which will own the cottage owned by the shareholders shall be allocated 100 shares in the SPV
4. You, the shareholder, may purchase up to 49% of the shares in the SPV. Under the legal agreements, you will enjoy the following priority payments:
   1. All monies used to purchase the shares in the SPV;
   2. All monies that are owed to you as fixed annual returns;
   3. All monies that are owed at the point of exit from the Select Ownership of the cottage.
5. The developer retains 51% of the shares in the SPV. Under the legal agreements entered between the shareholders, the developer will not be entitled to a single penny from the shareholding until you, the shareholder, are fully paid all your entitlement;
6. You may purchase up to 49% of the shares by yourself or with other people that you know or with other parties that have expressed a similar interest. To make life simple, you will be allowed to buy 10%, 20%, 30%, 40% or the full 49% of the shares in the SPV;
7. 49% ownership of the shares entitles the shareholder(s) to 25 days of free use of the holiday cottage in the mid-to-low season. In value terms, this usage amounts to an extra 3% per annum return on your shareholding;
8. During your Select Ownership you will not be expected to make any further payments towards: ground rents; service charges; utilities payments; wear and tear of furniture; renewal of furniture; insurances; non-domestic business rates; ongoing expenses of the SPV. In short, the legal agreements are there to protect you from becoming liable for any ongoing regular expenses;
9. You will be required to retain your ownership of the shares for at least 2 years whilst you enjoy all the benefits of ownership;
10. Between 2 – 5 years you will have the Option to sell your shares, fixed at the rate of 8% increase on your purchase price;
11. After 5 years we will have the Option to limit your ownership of the shareholding by buying them back from you with a fixed rate of 8% increase on your purchase price.

We are confident that you will conclude that the Select Ownership model offers you a true opportunity to become a genuine co-owner of a holiday property whilst earning 9.6% - 12% returns on your purchase price.

The Select Ownership model is exceptional in that it has all the benefits of a high return investment without the high risks. Your purchase price and the promised returns shall be fully prioritised from the value of the cottage.

Select ownership

Summary of Select Ownership

Select ownership at Select Villages means buying 10, 20, 30, 40 or 49% shares in an SPV which shall own a new build holiday cottage. The 51% is retained by the developing company. The Select Shareholder is granted priority rights under the legal agreements and is offered the following:

• Agreed Returns:
  1. 8% return annually on initial contribution;
  2. ‘Sell back option’ - Optional exit after 2 years worth 4% annually;
  3. ‘Buy back option’ – Agreed exit after 5 years worth 1.6% annually;
  4. The Occupancy Entitlement is valued at around 3% return on the contribution;
  Therefore the fixed returns range from 9.6% to 12% per annum.

  Contribution	Shareholding in SPV	Net Return annually	Occupancy Entitlement*	Buy-back payment
  £30,000.00	10% Preferential Shares	£2,400.00	5 days free holiday use	£2,400.00
  £60,000.00	20% Preferential Shares	£4,800.00	10 days free holiday use	£4,800.00
  £90,000.00	30% Preferential Shares	£7,200.00	15 days free holiday use	£7,200.00
  £120,000.00	40% Preferential Shares	£9,600.00	20 days free holiday use	£9,600.00
  £147,000.00	49% Preferential Shares	£11,760.00	25 days free holiday use	£11,760.00

• Fixed returns – no hidden costs: This means no deductions for: service charges; ground rent; insurances; utilities; furniture; Non domestic business rates etc.
• Occupancy entitlement in any one of the holiday homes on any Select Village site subject to availability.
• No property management issues: all taken care of by experienced Holiday Home Operator
• No frills – just watch your money grow with complete confidence and security
• Ownership of a non leveraged secure asset
  Asset values referenced by RICS Surveyors
  Preferential shareholding in the SPV
  Extensive legal agreements prioritising you the shareholder

Ownership entry levels starting from around £30, 000 upto £147, 000. All monies held in escrow account by company solicitors and released at agreed stages

• Independent legal Advice available from panel of leading firms of Solicitors
• Independent Financial Scrutiny of financial management and accountancy from specialized firm of Accountants

Select ownership

Model Analysis

CONSIDERATIONS	Select Ownership	Fractional Ownership	Timeshare
Ownership of an asset	Y	Y	N
Potential Open market saleability	Y	N	N
Annual Fixed Returns	Y	Y	N
Agreed percentage of Capital Uplift on Exit from Ownership	Y	N	N
Short Term Commitment	Y	N	Y
Medium Term Commitment	Y	N	N
Occupancy Entitlement	Y	Y	Y
Prioritisation to the Investor Owner	Y	N	N
Developer paid after the Select Owners Rights fully satisfied	Y	N	N
Multiple Ownership Entry Levels	Y	Y	Y
Property Asset remaining un-leveraged	Y	N	N
Operational Experience operating the Property	Y	Y	Y
Additional Charges to the Owner	N	Y	Y
Independent Legal Advise	Y	Y	N
Independent Financial Scrutiny over SPV	Y	Y	N