1. All individual investors, at any 'Nest Egg' level, pay a £825 (per share) 'Administration/Set-Up Fee'
The fee is payable with your syndicate application and is in addition to your funding commitment for the relevant 'Nest Egg' syndicate.
This fee is fully refundable only in the event of a failed funding-round, the timescale for which is 3 months from the point at which investment funds are called-in.
No other fees are charged to individual members of the 'Nest Egg' syndicate.
2. Once Thames property Nest Eggs has sourced and completed on a property purchase, a 'sourcing fee' of 2.5% of the 'Nest Egg' value is charged to the 'Nest Egg' company
A subsequent fee of 1% is charged for the sourcing of refurbishment contractors, and the monitoring of the refurbishment process, to ensure that the upgrade is completed on time and within budget.
3. At the point of sale of all 'Nest Egg' properties, all profits are shared between the syndicate investors and Thames Property Nest Eggs. Thames Property Nest Eggs takes 10% of all gross profits and the 'Nest Egg' company takes 100% of all subsequent profits for its shareholders. This rewards structure ensures that we buy well, refurbish well and sell well on behalf of the investors. In addition to this however, in the case of a 'Classic Nest Egg' (5 years hold), an additional annual and potentially tax-free dividend, is paid to all shareholders only… as voted for by the shareholders themselves.
4. All fees for 'Nest Egg' company formation, all annual accounts work, Companies House and HMRC returns (shareholders and corporate tax returns), and eventual company wind-up, and distribution of profits to shareholders, are invoiced to the 'Nest Egg' company direct by Moore Stephens Accountants, at an annual fixed fee of £1800-£2400.
5. All legal fees for acquisitions and sales of properties, including Land Registration and HMRC (Stamp Duty) payments, are invoiced to the 'Nest Egg' company direct by Royds Withy King Solicitors at an average fixed-fee of £1300-£1700 (exclusive of disbursements).
6. In the case of a 'Classic Nest Egg' (5 years hold), Thames Property Nest Eggs charges an annual fee to the 'Nest Egg' of £1000. This is for the management, coordination, and administration of the 'Nest Egg', as well as coordinating/implementing all voting decisions, and being the point of contact for all 'Nest Egg' investors.
7. In the case of a 'Classic Nest Egg' (5 years hold), and post property refurbishment Thames Property Nest Eggs acts as letting agent for the syndicate and identifies suitable tenants for the 'Nest Egg' property, managing the tenancy throughout the 5 year period, at a below London market rate of 10% of the rental income. Thames Property Nest Eggs reports monthly to all syndicate members on the status/progress of their relevant 'Nest Egg' account.
8. When instructed to do so by the 'Nest Egg' syndicate, Thames Property Nest Eggs advertises the property for sale on the open market. A sales fee of 1.5% is charged for coordinating the sale of a 'Nest Egg' property.
All properties are cash-purchased and therefore no purchases are reliant on borrowing, and the vagaries of interest rate fluctuations.
Approximately 80% of each 'Nest Egg' fund is used to purchase the property.
Approximately 10% of each 'Nest Egg' fund is used to refurbish the property.
Approximately 5% of each 'Nest Egg' fund is used to finance extraneous fees such as lawyers, accountants and Companies House returns.
Approximately 5% of each 'Nest Egg' fund is held in reserve as a safety-net, contingency fund.
Thames Property Nest Eggs advises and makes recommendations to the 'Nest Egg' syndicate about these precise fund allocations, on a property by property basis. The 'Nest Egg' syndicate itself however, makes the final allocation decisions and instructs Thames Property Nest Eggs to implement them on its behalf.
In the case of a 'Classic Nest Egg' (5 years hold), once launched, the 'Nest Egg' finances are topped-up, month by month by tenancy rental income. This cash-flow revenue underpins the philosophy that ensures that syndicate members are never required to top-up the fund, once the 'Nest Egg' is launched. However, each year the syndicate members are invited to vote for a (potentially tax free) dividend distribution to themselves. This is coordinated and actioned by Thames Property Nest Eggs. Within the context of each annual dividend pay-out, the contingency fund is never allowed to fall below 5% of the fund value.
9. Fees for 'Solo Nest Eggs'... All 'Solo Nest Eggs' are by definition, bespoke, one-off investment projects. All such projects are therefore quoted for, on a case-by-case basis. Once we have agreed an exact investment plan with the investor, we provide a personalised fee quote.