Definitions

The total of the Purchase Price of the Preferred Home and the following associated costs:
(i) Stamp Duty Land Tax
(ii) Legal/Conveyancing fees
(iii) Registry fees, searches, chancel repair policy etc.
(iv) Survey fees
(v) Valuation costs

The total market of all property investments made on behalf of our funders.

This is the difference between the Acquisition Costs (Purchase Price and associated costs) and Disposal Proceeds (net of associated costs) of the Preferred Home.
A capital appreciation occurs if the Disposal Proceeds exceed the Acquisition Costs and a capital loss occurs if the Disposal Proceeds is less than the Acquisition Costs.

This means:
(i) the sale of the property at the end of the lease term or at any other time;
(ii) damage recoveries (but only to the extent that it is not applied toward property restoration);
(iii) receipts of insurance proceeds (other than rent insurance proceeds)

Tax charge levied on realised profit when an asset is sold or disposed. It’s calculated on any realised gains or an increase in asset value from acquisition to disposal for an asset held for more than one year. It is applicable to shares, investment funds, second or inherited properties, sale of a business and valuables, etc.
For more information, visit https://www.gov.uk/capital-gains-tax

This is the total of your monthly or annual payments made on:
(i) Unsecured loans - personal loans, buy now pay later loans, student loans, credit card loans, P2P loans etc.
(ii) Secured loans - car loans (hire purchase), business loans secured by personal assets etc.
(iii) Child and/or spousal maintenance

This is the proceeds generated from the sale of your Preferred Home to you at lease end minus the following associated costs:
(i) Estate Agent fees
(ii) Legal/Conveyancing fees
(iii) Energy Performance Certificate (EPC)
(iv) Capital Gains Tax

The amounts paid to our funders on a quarterly basis. This is calculated as Gross Rent minus deductions for:
(i) Property-related costs (management fees, building & landlord insurance, ground rent, repair & maintenance and other service charges)
(ii) Capital expenditure
(iii) Asset Management fees paid to us for managing the Preferred Home, on behalf of the SPV owner. This includes frequent servicing and monitoring of the Home including rental collections, running bank accounts, reporting etc.
(iv) Administration fees paid towards SPV tax reporting & accounting audits, third-party professional costs incurred in running the SPV.

This is a measure of the Dividends paid to our funders relative to the Purchase Price of your Preferred Home (plus purchase costs and taxes).

The ratio of:

(i) percentage of the market value of the home that the tenant receives as deposit towards their purchase from us at the end of the lease term; to

(ii) percentage of the tenant's total Principal Savings to the Purchase Price of the home at the start of the lease term.

This is the total of your monthly or annual payments for:
(i) Utilities - electricity, gas and water.
(ii) Council Tax
(iii) TV license, internet & cable/satellite TV, mobile phone, gym membership,
(iv) Insurance - car, home & contents
(v) Transport Costs - public transport (rail, tube and bus), car (maintenance, fuel, etc.)
(vi) Childcare Costs - school fees, educational trips, other curriculum activities.

This is the sum of remunerations (earnings) received by employees (your salary), income earned from self-employment, private pensions and investments, and cash benefits (such as state retirement pension, child benefits).

This is a measure, expressed in percentage, of the annual Gross Rent received relative to the Purchase Price of the Preferred Home.

The amount you pay us every month for the use of your Preferred Home, while you save towards a purchase from us.

A percentage (equivalent to the same % contributed towards your Initial Principal Saving) of this is added to your Principal Savings.

The total of Committed Costs, Fixed Costs and Living Costs, excluding Rent.

Ratio of Sale Price of Preferred Home to Tenant’s Gross Income, expressed as a multiple.

Ratio of Sale Price of Preferred Home to Tenant’s Net Pay, expressed as a multiple.

Tax charge levied on income earned, including salaries & benefits, business profits, pensions, rental income, dividends and interest from savings, trust income etc.
For more information, visit https://www.gov.uk/income-tax

This is the initial deposit that you contribute towards the Purchase Price of your Preferred Home. This secures a beneficial share interest in the property-owning SPV, and is placed into a secure Tenant Deposit Scheme.

This is a financial metric used to measure the performance of our investment in the property, and is defined as the percentage rate of interest earned on each £1 invested for each period it is invested. The higher the IRR, the better the investment.

This is the total of your monthly or annual costs for:
(i) Food & Drink
(ii) Lifestyle, Entertainment & Leisure - social outings (cinema, theatres, museums, restaurants), personal care, clothing, audio-visual & gaming equipment, furnishings etc.
(iii) Holidays

The lease agreement between the property-owning Special Purpose Vehicle (SPV), in its capacity as Landlord, and the tenant/homebuyer, which outlines the terms of the lease over the occupational period.

This is a measure of the return generated by an increase or decrease in the capital value of the property (excluding Dividends from Rental Income and after deducting sales costs) during the holding period, relative to the acquisition cost of the property.

This is a measure, expressed in percentage, of the annual Net Operating Income received (after deduction of property operating costs) relative to the acquisition costs of the property (Purchase Price of the Preferred Home plus purchaser’s costs).

This is the remaining rent after deducting the Preferred Home’s operating expenses (ground rent, management fees, building & landlord insurance and other service charges) from the Gross Rent received.

Gross Income minus employee National Insurance Contributions, Pension Payments (either via Net pay, Salary Sacrifice or ‘Relief at Source’ Tax Relief arrangements) and Income Tax.

This is a measure, expressed in percentage, of the annual Net Operating Income relative to the Purchase Price of the Preferred Home.

A pension is a kind of retirement plan, usually tax-exempt, whereby an employee makes regular payments from their salary to a pension provider to save for their future benefit. The employer also makes matching contributions towards the same pool of funds set aside for the employees’ future benefit, which is then invested on the employees’ behalf, allowing an employee to receive benefits upon retirement or disability

The home chosen by the tenant, and vetted and purchased by us.

The total monthly contributions made by the tenant, over the term of the agreement, towards the Purchase Price of the Preferred Home. This will accumulate into an exit deposit towards tenant's purchase from us lease end. This will be made up of:

(a) a percentage of monthly rent payments, with the applied % equal to the % of the Purchase Price contributed as Initial Principal Savings and;

(b) % of Purchase Price.

This is the agreed price of the Preferred Home that we purchase it for, at the start of the lease agreement.

Net Pay minus Household Expenditure, excluding Rent.

Net Pay minus Household Expenditure and Rent.

This is a limited company set up solely for the purpose of purchasing, leasing and selling the property to the tenant. This allows us to offer ownership of the property to our investors and the tenant via ownership percentages in the vehicle. This setup allows fewer risks and liabilities for the investors and the tenant, as it is a standalone legal entity with its own assets and liabilities, which isolates financial risks, for both investors and tenants, and personal income tax liability for the tenant.

This is a progressive property tax paid to HMRC when freehold or leasehold residential property or land over £125,000 is purchased in England and Northern Ireland. The amount paid is dependent on the Purchase Price and tax thresholds.

Net Pay Arrangement: With this arrangement, the employee’s regular pension contributions are deducted from your salary before any tax is deducted, which ensures that they automatically receive all tax relief they are entitled to, with no need to claim anything from the tax authorities.
Example: If the employee contributed £100, the whole amount will go into their pension pot, with no need to claim anything further (based on their tax rate) from the authorities.
 

Salary Sacrifice Arrangement: With this arrangement, the employee agrees to a reduction in their salary (for pension purposes) by an amount equal to their pension contributions, with the employee’s pension contributions then paid by the employer in addition to the employer’s own matching contributions.

This means that the employee pays less Income Tax and National Insurance, as it is calculated on the reduced salary, thereby contributing more efficiently to their pension. This is a tax-efficient and cost-effective way of deducting both employee and employer pension contributions. ‘Relief at Source’ Arrangement: With this arrangement, tax calculated on your salary will be initially deducted along with national insurance contributions, leaving your take-home pay from which your pension contributions (net of the tax rate) will then be deducted. Since pension contributions are deducted after tax, you will pay 80% (based on 20% tax rate) of your elected pension contribution, with the remaining 20% of your elected pension contribution topped up by your pension provider. Your pension provider will then claim 20% tax relief from the tax authorities. If you pay Income Tax at a higher rate than 20%, you can claim extra relief directly from HMRC through a Self-Assessment form. They will either send the extra relief directly to you or adjust your tax code to reduce the total amount of tax you pay over the year.
If you are a non-tax payer or live in Scotland and pay income tax at a rate of 19%, you will still benefit from a 20% top-up on your contributions from the government.

Example: If you elected to contribute £100 towards your pension, £80 will be deducted from your ‘take-home’ pay, which will be topped up with £20 from your pension provider. They will then claim £20 back from HMRC.

This is a government-approved scheme that holds and registers rental deposit collected from tenants at the start of an Assured Shorthold Tenancy (AST) Agreement. This scheme ensures that the tenant’s deposit is protected, and it is the responsibility of the landlord to protect the tenant’s deposit 28 days after receipt. Some of the common ones to use are the government-approved TDS, Deposit Protection Service and MyDeposits.

This is formal land registry document (known as TR1) used to record the transfer of a property from the seller to the buyer and confirms that the property is registered. It contains the title number, address, legal name of seller, legal name of buyer, agreed purchase price and any new rights or covenants declared in the purchase contract.