Unique Property Syndicates
Professional Help Sought
Are you an FCA authorised person/company that could assist our group ensure all of our…
UNIQUE PROPERTY CLUB
…compliance and governance issues are properly fulfilled?
We have a reasonable budget to cover the wise counsel we are seeking from a Financial Conduct Authority experienced/regulated person or firm.
Please click here to get in touch with Unique Property Bulletin to discuss engagement.
The Old Keil Hotel. Our First Unique Property Building. Three Friends Purchased This For £24,000. Sold At £102,500
Since our original property club in 1998, we have progressed 18 Unique Property Syndicates. Originally established amongst a group of friends. We have made strenuous efforts to ensure that each project is managed to the highest standard. Building Control, Planning Permission, Conveyancing Standards, Purchase/Resale finances and title deeds handled exclusively by our syndicate solicitors.
The original 1998 group of close friends were broadened from 3, to 6 and eventually 17. All friends. But when the exploits of these unique property syndicates began appearing in the Unique Property Bulletin, it became evident there were more folk wanting to join. To ensure probity and compliance with the statutes in this regard, we incorporated a public limited company (plc) and issued the requisite public share issue prospectus. This was necessary given the volume of people wishing to join after some fairly decent results were posted: click here and here.
All went well until the banking crisis of 2007. At that point we decided to leave these projects until the banks settled down. Even though we are 100% equity driven and do not utilise mortgage money or loan finance, the impact upon the property market by the banking industry left several of us with serious concerns.
Since we ran our last unique property syndicate in 2006, the Financial Services Act 2012 has come into force. In 2015 we started to receive enquires from Unique Property Bulletin readers about rebooting the old property club projects.
Consequently we have been examining the current legal status of property clubs such as the ones we used run – and whether they are, or can be made to fit new FCA compliance requirements (here).
One of the golden rules that “everyone-participates-in-the-decisions” is a core principle we abide by and ensures the statutory exemption applies: CLICK HERE.
The generic primary rules can be summarised here.
We even go above and beyond the minimal thresholds by ensuring all monies and property are handled by an appropriate FCA/SRA approved solicitor.
So far so good. All proper and legal as far as the statutory exemption relating to “collective investment scheme” rules.
However, I am getting all bent out of shape with the EU directive on “Alternative Investment Funds”. In fact, after three hours of studying the legal print (here) I am all perged out! For what it is worth, I was trained in law to a high degree during a previous career. Even with that legal beagle eye, this is heavy going.
Our own solicitors of 18 years standing are very good. But they specialise in conveyancing of property.
So I need to find a financial industry professional clued up on property club law.
Our own small group of friends can continue quite happily, and legally with a closed property group. The ATM slip below indicates that we don’t need to run broad based open unique property syndicates.
An Old ATM Slip Souvenir – At £146,305 – The Private Syndicate Structure Worked Well
We just want to let new folk engage if these unusual building purchases and sales.
Each core member of our group have enjoyed the private property club adventures owning and playing with lighthouse buildings, coastguard towers, fog horn structures, railway buildings and even the occasional island.
So far, there are some 201 friends, colleagues and readers who would like to consider now joining one of these unique property syndicates property purchase clubs.
We just want to make sure that we run this as professionally as possible. Not least we require to be completely on the right side of the regulations.
So if you have experience of Financial Services, please get in touch (click here)
I used to be Consumer Credit Licence plus FCA LAUTRO registered and compliant….
Old Consumer Credit Licence
Old LAUTRO Registration
But these licences and certifications have long since expired. Will the full regulatory registration process have to commence again? This is all well and good for the million pound property projects where the costs in regulation compliance can be absorbed. But for small £25,000 properties, a full plc creation seems a bit over the top. Especially when we have a fair amount of safeguards in place. The prime example being our solicitor handling all of the funds (inbound and outbound) plus the title deeds of each building.
Time to establish IF we require additional regulation and compliance for the current format of unique property syndicates since the 2012 Financial Services Act came into force.
Time to seek professional guidance.
If you can help, please get in touch:
Please Click Here To Make Contact