Investment structures can be complex, particularly when the investment is held in a pension wrapper such as a SIPP, QROPS or similar structure. Add a distressed situation into the mix and it can be difficult to understand future investment performance and therefore an appropriate course of action for recovery.
We are helping investors understand what their investment could yield for them and the cashflow their investment might generate over its investment life.
We commission qualified RICS surveyors to value security assets that provide loan or bond collateral, but for some investments, such as fractional or other partial investments in hotels for example, Broadleaf does not believe that a RICS property valuation gives a true representation of the value of a fractional interest and may give a misleading impression.
This is because fractional ownership is not a direct ownership of property but is an ownership of a fractional interest. There will be many fraction holders that when combined, own an entire property. While the property is part of the consideration, there are other much more significant factors that affect investment cashflow such as the ability to sell a fractional interest and the costs of maintaining a fractional structure, which a RICS surveyor would not normally consider.
RICS valuations can also be disproportionately expensive compared to the use they provide for anyone seeking to fairly value or sell a fractional / partial interest.
Working together is key to achieving any meaningful outcome in a distressed or under performing investment situation. This is particularly so for fraction holders and those investors holding a partial, direct interest in a property investment.
We offer specific services for investors who want to understand the future performance of their fractional / partial investment and who want to work with us to build an assistance group to create some options to deal with their distressed or under performing investment.
A report on the financial performance and history since ownership of the property in which you own a fractional interest.
Broadleaf will request data from your pension company (if applicable) and create a report that will help you understand the financial performance of your property and the options available to you so you can discuss them with your advisor.
You sign an agreement with Broadleaf, we provide the report, and we get paid, only when/if you sell your property. There are no up-front costs.
Understanding how much cash your investment could deliver over the remaining life of the investment.
Many fractional owners want to understand how much cash their investment could deliver so that they can make an informed decision about continuing to hold or to sell their investment.
We charge a small fee for producing the cashflow report that is specific to an investor’s property.
Rather than pay the full fee for the cashflow report, we halve our fee if an owner signs-up to our monthly subscription service. This service enables Broadleaf Assist to keep owners abreast of any developments and market dynamics that materially affect the value of their fraction and provide them with access to an independent party who is in touch with other fraction holders and to continue to build a fraction holder Group.
Disclaimer
Our services do not constitute a valuation opinion.
If you require a property valuation you should seek advice from a qualified valuation agent.
If you need to take financial advice you should do so from a qualified financial advisor.