LOCATION
What is the address of the development?
Quayside View Studios, Skinnerburn Road, Newcastle-upon-Tyne, NE1 3RH
PLANNING
Who are the developers?
StripeHomes
Is it a new build or a refurbished development?
New build.
Who will the architecture company and construction company be?
Napper Architects and Meldrum Construction Ltd.
What are the timeframes for the build?
Phase one: September 2020
Phase two: February 2021
Is there a New Build Warranty and if so what type?
Yes, there will be a 10 year warranty in place with the relevant provider.
Is there any indemnity insurance in place?
All relevant Professional Indemnity for the design team will be in place with appropriate warranties to the benefit of the purchasers.
Am I buying freehold or leasehold and how long is the lease?
Leasehold with a 250 year lease.
What is my exit strategy and is there a buy back?
There is no buy back option. You will receive the title deed for the property once you have completed the purchase. You can sell via the open market at any time in the future via StripeHomes or another vendor.
What are the construction materials?
- Structure to be steel frame on a piled foundation
- Insitu concrete floors on a metal decking
- Concrete lift and stair core
- Metzec internal panelling forming a cavity construction with cladding to the external envelope
- Metal window frame with slim line picture frame profile to meet Part L
- Aluminium grill to plant/bin store/cycle store
- Colour to match window frames
- Curtain walling to entrance
- Internal metal studwork dividing studios and communal areas
RESERVATION
Is there any financing available?
This is a cash only investment, payable in staged payments over the course of the build schedule. However, once you have completed on the units, there are organisations providing commercial finance.
How will the staged payments be structured?
- £5,000 on reservation.
- 50% on exchange.
- 25% six months after exchange.
- 25% upon completion.
LEGALS
Who are the buyer’s solicitor?
- ET Law Solicitors & Legal Advisors
- Stephens Wilmot Solicitors
- Abacus Solicitors
Do I have to use the provided solicitors?
We recommend you use these solicitors as they have a wealth of experience with student developments and with developers who require a 28 day exchange period.
Is there a draft contract I can view prior to purchase?
Yes – ask your StripeHomes contact for a copy.
Is there a draft management contract I can view prior to purchase?
Yes – ask your StripeHomes contact for a copy.
Can I buy a student unit using a non-UK company?
Yes.
INCOME YIELD
What are the rental assurances and how does it work?
StripeHomes is assuring the net investment return (i.e. gross rent less service/lettings charges) equals no less than 8%* of the purchase price for five years from the date of legal completion. If the net return is less than 8%*, StripeHomes will provide the funds equal to said difference e.g. 7% income would result in 1% payment from the management company.
*Excludes ground rent charges at £250 per property per annum.
When will it be occupied and when will I receive my money?
Practical completion for the building is due for September 2020. The first payment will be at the end of the September 2020 and will be paid termly e.g. Jan, April.
Will overseas buyers need a UK bank account?
No, but it is preferred if the buyer does have a UK bank account as all funds will be paid in GBP. Any available monies will be paid into your nominated account with deductions for any transfer charges to the cost of the beneficiary.
Does the buyer need to pay any tax on their income?
We advise you seek independent tax advice to conform with all UK tax regulation.
Does the investor receive any rental uplift?
There is an 8% net rental assurance for the first five years and after this period any uplift will be passed onto the landlord.
TENANCY
Who can live in the apartment?
Students studying at a North East university.
Can the buyer live in their chosen unit?
Yes, if they are a student meeting the criteria. Please note this will void out the ‘rental assurance’ on this unit and full management costs still apply.
What is the length of tenancy agreement?
51 weeks.
Who is the management company?
The management company will StripeStudents, a division of StripeHomes, as we’re passionate about the legacy of all our developments and the
communities we build. We are highly experienced in property management and it ensures we keep the development up to its high standards.
What is the management charge?
Expected between 18% and 20%.
If a unit is empty will I still receive my 8% net return?
During the first five years you will continue to receive the 8% net return regardless of whether your unit is occupied or not – this does not include the annual £250 ground rent charge.
Can I manage the lettings of my own unit?
No, not for the first five years. After this period you can manage the lettings of your own units. You will still pay the service charge and we advise working with the on-site management who have strong partnership with the local universities and letting agents.
