WHAT ARE THE INVESTMENT OPTIONS AND THE EXPECTED RETURNS?

The investment provides two payment options, in both cases you reserve your desired unit with a £5,000 reservation fee. Option 1 is to purchase a unit in its entirety with 100% funds paid on exchange of contracts, this route allows the 10% interest to paid quarterly in arrears, from exchange. Option 2 is to deposit 25% on exchange with the final balance to be paid on completion – the 10% interest payments will then be paid quarterly in arrears from completion.

IS VAT PAYABLE ON THE INVESTMENT?

As this is a commercial property investment VAT is payable on the purchase price. VAT will be charged by the sellers at the standard rate (currently 20%) of the purchase price value. A UK VAT registration will enable you to claim the VAT back from HM Revenue & Customs (HMRC) so that this VAT charge will not be a cost to you. By being registered for VAT, it will be possible to recover this VAT, plus any other UK VAT incurred that relates to the acquisition of the lease in the hotel room, such as UK legal fees. Living Brick have appointed Butterworth Barlow Accountants. Butterworth Barlow will provide a turn- key solution to all buyers of rooms at the hotel including preparation and submission of their UK VAT registration application, Living Brick will cover all associated costs.

WHAT SECURITY DO I HAVE?

As an investor you will own the title deed to your specific unit, this will be registered in your name at the Land Registry. On practical completion you will be given a first legal charge over the building, Living Brick Ltd will retain both the freehold interest and the long leasehold interest in the ground and lower ground floor commercial space. As an owner operator, Living Brick will be invested in the operational management of the hotel as well as the commercial element of the building.

IS THERE ANY INDICATION ABOUT THE EXPECTED OCCUPANCY LEVELS?

Liverpool city centre has been experiencing unparalleled levels of tourism over the last decade culminating in our highest occupancy levels to date. We currently have less than fifteen hotels described as “boutique” with demand consistently outstripping supply. We have designed a unique concept which will provide flexible accommodation in a vibrant, atmospheric setting within the most coveted location in the city. We are currently in talks with a range of partners who are eagerly anticipating the opening of the hotel including Liverpool City Council.

WHAT ARE THE BENEFITS OF GETTING INVOLVED?

No stamp duty is payable on purchase, the same applies to ongoing commitments such as management charge or ground rents which you would associate with more traditional residential investments. As an ‘armchair investor’, your yield is paid quarterly in arrears net at 10% pa. The ROI is not based on the occupancy level of your suite but on the hotel as a complete entity providing a secure quarterly return.