Loan notes are in effect legally binding IOUs that allows the payee to receive payments – with an interest coupon which is paid bi-annually.
Manchester tops the table as the best place to invest to achieve high rental yields. Not only can investors achieve high rental yields here, there is also a sizeable rental sector. 26.85% of the housing stock is privately rented, which is above the national average of 18% and assures investors that there will be a strong demand for property. Manchester is also home to 60% more 25-29 year olds (those most likely to rent) than anywhere else in the UK.
The developer found an iconic building, located right in the heart of Manchester city centre, close to the main shopping district.
Before they acquired the building in mid-2015, using loan note funds, it had sat vacant for years. The purchase attracted the attention of local press who applauded the developer’s intention of bringing such a stunning central building back to useful purpose and guaranteeing its long-term future.
The property was refurbished to a BREEAM energy efficient standard to minimise the running costs. Once completed to a high specification it was let to young professionals and achieved a high rental yield income.
This property will be retained within the developer’s property portfolio. Exit finance with Lloyds Bank PLC will replace the loan note funds secured against the building and the funds will be returned to the security trustees.
The typical refurbishment process takes 6 to 18 months. Finance for the properties will be obtained at an early stage and either retained or sold upon completion.
Income Paid Twice Yearly
Exit Funds Paid @ Year 5