House for Sale : Cheshire, Stockport, England

This investment is recommended for members wishing to purchase commercial property.

By joining a syndicate to reduce the initial deposit. Using a SIPP to gain tax relief on earned income. Retaining the property in a tax free environment for at least 11 years.

This Type C syndicate (see explanations on this page) buys high-yielding new-build commercial property and holds it long term to generate income for the investor once the mortgage is paid off in around 11 years.

The syndicate will form exclusively from our members and consist of between 3-15 investors - it has a purpose of buying a selected small office unit off-plan and un-tenanted and then locating a tenant with the help of the developers agents.

Once tenanted the property will be held long term. The high expected yield of 9% on the purchase price will allow the mortgage to be repaid over around 11 years.

Once the mortgage is paid off the syndicate will distribute income on a quarterly basis. Based upon the assumption that rents rise with inflation a share purchased with an investment of £30000 would earn the investor around £8000 pa on an indexed basis in around 11 years. (see the details of the proposed syndicate in more detail to see how this is calculated)The syndicate will provide limited liability for the investor and tax efficiencies by acting as a tax transparent structure to ensure tax is paid at the rate of the individual syndicate member. The office property will be bought off-plan at negotiated discounts direct from the developer. Depending upon the level of investment by all members, some gearing/ borrowing will be used.

This is an ideal diversification for the buy-to-let investor and provides very high income potential for a modest investment today.

A minimum investment of £25,000 is required with a maximum per investor of £50,000.