Letting Income Potential
Owner’s Cottages are pleased to offer purchasers who buy a new build cottage in 2008 a guaranteed return on investment.
Sample letting incomes* Owner’s Cottages at The Savoy
| ‘Whitfield’
3 Bedroom Cottage Letting Band ‘D’ Cottage example 1 (£) |
‘Vermont’
2 Bedroom Cottage Letting Band ‘C’ Cottage example 2 (£) |
|
|---|---|---|
| Investment in Property | 219,950.00 | 174,950.00 |
| Fully Fitted Furniture and Essentials Pack | 13,000.00 | 11,000.00 |
| TOTAL INVESTMENT | 232,950.00 | 185,950.00 |
| Income Based on 26 Peak and Shoulder Weeks (weekly tariff ’08) | ||
| Total Gross Income | 24,700.00 | 20,045.00 |
| Less Inclusive Car Ferry Costs | 1,170.00 | 1,170.00 |
| 16,530.00 | 18,875.00 | |
| LESS | ||
| Marketing Sales and Letting Costs to Savoy (inc. vat) @ 25% | 5,882.50 | 4,718.75 |
| Net Letting Income | 17,647.50 | 14,156.25 |
| LESS | ||
| Annual Maintenance and rent (inc. vat) | 3,525.00 | 2,937.50 |
| Estimated Electric-Gas-Water on a 26 week letting | 676.00 | 520.00 |
| Building Insurance (annual charge) | 200.00 | 200.00 |
| T.V License and fees (apportioned) per annum | 50.00 | 50.00 |
| TOTAL COSTS | 4,451.00 | 3,707.50 |
| Net Income after all costs | 13,196.50 | 10,448.75 |
| Initial Return on Investment | 5.66% | 5.62% |
* Note: All income projections are for guidance only and cannot be guaranteed. In addition, new purchasers in 2008 will benefit from the Owner's Cottages three year minimum investment return guarantee as detailed below.
Terms and Conditions of Income Guarantee 2008
The Savoy Country Club Ltd (Management Company) will provide an income guarantee to all buyers of a new build cottage in 2008 from date of completion for a period of 36 months. This income guarantee will be paid monthly in arrears at the following rates:
- For the first 12 months after completion paid at 7% of the total investment*
- For the second period of 12 months at 6% of the total investment
- For the third period of 12 months at 5% of the total investment
The Owner's agree to restrict their own personal use of the cottage to 2 weeks in the peak period, 2 weeks in the shoulder period and 8 weeks of the remaining off peak weeks.
- Peak weeks are defined as mid July to the end of August, pre and post Easter weeks, May Whitsun Bank Holiday week and Christmas / New Year week.
- Shoulder weeks are defined as February half term week, October half term week, June, 2 weeks in July other than as included in the peak period and the first two weeks in September.
- The remaining 32 weeks of the year are off peak.
No other payments will be made other than the monthly income guarantee and each account will be assessed at the end of December each year. At this time any surplus over and above the income guarantee will be paid to the Owner's and any deficit will be written off by The Savoy Country Club Ltd. In this calculation the income generated will be the gross rental income minus any ferry costs and our letting commission. All other costs such as maintenance, ground rent etc. remain payable as per our usual terms.
* Total Investment means the purchase price of the cottage and the furniture package together.