LAND MATTERS

LAND MATTERS SUSTAINABLE PROPERTY FUND UNLOCKING LAND VALUE THROUGH INNOVATION IN PLANNING AND STRUCTURING

One week to Practical Completion- 2 units already reserved!
30/11/2021

One week to Practical Completion- 2 units already reserved!

What have you done to pandemic-proof your business?The pandemic has created more than a health risk, we are now faced wi...
30/10/2021

What have you done to pandemic-proof your business?

The pandemic has created more than a health risk, we are now faced with the economic risk that will result from the global response.
❓ Is your business prepared for an environment where people don’t want to come back to work?
❓ Are your supply chains secure or creating a drain on your cash flow?
❓ Do you have cash margins to support higher taxes?
❓ Are your business systems optimized to embrace technology in a digitized world?
❓ The world is a different place are you and your business prepared to take advantage of those differences?

LAND MATTERS are very proud to be the selected partner to host the Entrepreneur Fast Track here in on 25th November 2021.

Key event speaker is a world renowned futurist and the creator of Wealth Dynamics - Roger James Hamilton.
https://www.youtube.com/watch?v=3vKPvVZeptw

Don’t miss out and book your Early Bird tickets now! 👇
https://entrepreneurfasttrack.geniusu.com/london/

Final coat of render is on track this week... scaffolds down next week... just in time for our marketing launch on Novem...
28/10/2021

Final coat of render is on track this week... scaffolds down next week... just in time for our marketing launch on November 6th!

80% NOW SOLD!
22/10/2021

80% NOW SOLD!

CGI’s of our new development in Surbiton - real images coming soon!
22/10/2021

CGI’s of our new development in Surbiton - real images coming soon!

Our 1st ground up development in Ealing, London - Old Oak Lane Railway Cottages celebrate 1 year of Practical Completion...
22/10/2021

Our 1st ground up development in Ealing, London - Old Oak Lane Railway Cottages celebrate 1 year of Practical Completion:)

Day 9 of Advent Challenge by Partners in PropertyI have received several messages asking me to expand on my yesterday’s ...
09/12/2020

Day 9 of Advent Challenge by Partners in Property

I have received several messages asking me to expand on my yesterday’s post regarding benefits of using SSAS so I provide a more detailed illustration based on my structure in LEATHERHEAD High Street.
If you are not a numbers person I apologise:)

1. By buying a commercial unit into my SSAS I reduced both GDV and project costs by £350,000.
2. Profits however remained unchanged as commercial unit does not change use and does not contribute to the value creation. As a result both profit on costs and profit on GDV increased by c. 5% in my case.
3. Profitable deal looks more attractive to lenders; also some lenders don’t like commercial elements. In my case restructuring improved the proposed terms by c. 2% p.a., which is very material on £1.5m borrowing for 18 months.
4. Lenders still work out the loan amount as % of GDV so the gross loan capacity went down by 65% of £350,000 so £227,500. Interest facility also reduced accordingly so the net loan advance went down my only 53% of £350,000 so by £185,500.
5. Since my SSAS contributed £350,000, but the day one advance only reduced by £185,500, the difference is pushed down to reduced equity requirement. As a result of this restructure equity layer went down by £164,500. We all know how expensive equity can be and in my case it was c. 30% of the total equity requirement.
6. Of course to get this deal agreed by your SSAS trustees you will need to make sure your SSAS is property remunerated. The beauty of SSAS is that ultimately you have the flexibility to choose where to record your profits depending on your personal circumstances.

So as per my post yesterday I hope the above demonstrates:
1. Reduced third party leverage
2. Reduced equity required
3. Enhanced returns on my pension pot
4. Increase project return

Please note the above ignores taxes and legal fees. Also I did not cover Loan Back component of my strategy, which was slightly more complicated, but ultimately impacts the deal economics in the same way:)

Thank you for reading till the end:)

Practical completion achieved on our beautiful development in Old Oak Lane!
25/09/2020

Practical completion achieved on our beautiful development in Old Oak Lane!

Address

Bromley

Telephone

+447970117482

Website

Alerts

Be the first to know and let us send you an email when LAND MATTERS posts news and promotions. Your email address will not be used for any other purpose, and you can unsubscribe at any time.

Contact The Business

Send a message to LAND MATTERS:

Shortcuts

Share

Category