Frequent asked questions – FAQs
- What is the minimum and maximum investment?The minimum investment is £25,000 and there is no maximum.
- Can I sell my holding?Yes.
A member can sell their holding at any time to another syndicate member, or to a third party. Typically holdings are sold to existing syndicate members. Rougemont is authorised to assist in co-ordinating the sale and in communicating the availability of the investment to other members.
- Who will manage the syndicates?Rougemont will co-ordinate decision making within the syndicate including keeping syndicate members informed of matters affecting the property and arranging for specific decisions to be made where necessary.
- Who will manage the property on behalf of the syndicate?It is important that one single party co-ordinates the day to day management of the property. Harlow Property Management will act as the day to day management company for the property and will account to the syndicate members for all administrative functions; including the collection and subsequent distribution of the principal rent, insurance rent, and VAT.
- What happens if the property becomes vacant?The nature of commercial leasehold tenancy agreements provides the landlord with a reasonable period of notice should a tenant chose to vacate the property or should there be a tenant default. Harlow Property Management will therefore be able to anticipate any likely voids and appoint the necessary professionals to re-let. However, there is always a possibility of a void within the income stream and holding costs of an empty property may be payable.
- What would happen if, for any reason, Rougemont ceased to exist?The legal title to the property is held in the name of a Professional Trustee who must act in accordance with the wishes of the syndicate members (by a 75% majority of the ownership of the property). The syndicate members are the individual legal beneficial owners of the title. Rougemont is employed as the authorised Managing Trustee. The syndicate Trust Deed includes a provision that allows the syndicate members to change the Managing Trustee should the members (acting together by a 75% majority of the ownership of the property) wish to do so. This structure safeguards both the legal title to the property and the ability of the syndicate members to appoint a new Managing Trustee.