Investors Webinar - Bovisand Harbour

Investors Webinar Palmerston Court, Bovisand Harbour

A very warm welcome MALCOLM PRESCOTT MNAEA Managing Director, Webbers Property Services Ltd Devon, Cornwall and Somerset

Meet the Developer PHILLIP BEAGLE Director Fort Bovisand Developments

KEVIN ELLIS Founder of Land and New Homes Network

JAMES CLARKE MNAEA

Meet our expert panel

Director of New Homes Lang Town and Country

SIMON PYNE Owner at Pureserviced, Corporate & Event Accommodation

CHARLIE GREEN Mortgage and Protection Advisor at Wagner Gibbs

Today's agenda Introduction to Bovisand Harbour Exclusive tour of Palmerston Court The local area The local market

Luxury concierge Investment opportunities Financing Questions and Answers

Introduction to Bovisand Harbour 81 luxury residences Four phases A range of modern homes and apartments Prime coastal location in the South Hams Unprecedented amenities and facilities Harbour, restaurant, fresh fish stall, water ferry 24/7 concierge service

PHASE ONE

PHASE TWO

PHASE THREE

PHASE FOUR

Palmerston Court

Anchorage Apartments

Mayflower Point

Artillery Row

A deluxe collection of six, three-floor, three-bedroom homes overlooking Bovisand Bay

A contemporary complex of 40, two and three-bedroom apartments with large external terraces overlooking Bovisand Harbour

A selection of 14 one, two, and three-bedroom apartments in the original cliffside fort, including Henderson Tower and Webb Tower, with premium views out to the breakwater

A handsome, granite terrace of 16, one-bedroom studio apartments with views out to the breakwater.

Plus two, three-bedroom tower homes, and one, three-bedroom central home, each with two floors and large external terraces showcasing panoramic views across the breakwater Moncrieff House

Proposed timeline

A modernistic, cliffside, two-bedroom home above Artillery Row with stunning breakwater views Rennie House A stylish, two-bedroom home behind Artillery Row with upper floor views out to the breakwater

Site Plan

The local area

The local area of South Hams SOUGHT-AFTER CORNER OF SOUTH DEVON South Devon is an Area of Outstanding Natural Beauty Boasts stunning scenery along with two sheltered, sandy beaches which make up part of the South West Coast Path.

PERFECT LOCATION FOR INVESTMENT Benefits from quick access to the South Hams countryside, Dartmoor National Park, picturesque coastline, historic market towns and fishing villages.

Benefits from easy links to Plymouth City Centre via the proposed electric ferry service from the development or a 6-mile journey by car.

8.2% House price increase in 2021

Sea views Properties with sea views are in high demand

In the Bovisand to Mothercombe section of the South Hams

But in short supply

A strong start to 2022

One in twenty homes

The local market has had a strong start in 2022

One in twenty homes changed hands in the South Hams over a 12 Month Period

We are still experiencing a lack of stock coming to the market.

The annual rate of housing stock turnover in the South West was 4.7%

Dataloft, Land Registry

Supply and demand FOR 2 - 5 BED PROPERTIES FROM £500,000

Rightmove

Luxury Concerige

Concierge overview Full onsite concierge Available by directcall, smartphone or tablet app Available 24-hours a day, 7 days a week Property management Leisure and lifestyle arrangements Luxury travel planning and lifestyle preparations

Representative concierge services Private transport for safe and secure access to and from the development Onsite delivery of fresh, locally-sourced produce and grocery orders direct to your property Onsite secure receipt of parcels, packages, and post Full maintenance and housekeeping arrangements Premium event and restaurant reservations Valet, laundry, and dry cleaning Vehicle valeting, servicing, and hire Collection of guests arriving into Devon by train, plane, or boat Provision of private wine sommelier and/or chef Arrangement of all water sports facilities, boat experiences, and specialist excursions

Investment Opportunities

2021

Domestic Tourism

South Hams

"STAYCATIONS"

£56BN

MATURE AND ESTABLISHED

BUZZWORD

SPENT IN 2021

MARKETPLACE

International holidays still at extremely low levels since the pandemic began

60% increase on 2020 but still lower than pre-pandemic levels offering optimism and scope for growth

Marketplace for second homes / holiday homes

OCCUPANCY LEVELS

SECOND HOMES

Occupancy levels in key

Only 3.5% of all properties in

summer months in South

all of Devon are second

Devon and Plymouth

homes, compared to 4.7% in

maintained at 90%+

Cornwall. Good capacity for additional quality housing stock

FIFTH MOST POPULAR LOCATION

23% VISITORS ARE INTERNATIONAL

South Hams is the fifth

Historically 23% of all visitors

most popular location for

to the area are international,

summer school holidays

who tend to book well in

in the UK

advance and at premium rates to secure certainty

Pursrerviced

83% rise in Google searches for 'staycation' between June 2020 and June 2021

Google Analyics carried out by Simply Business

173% rise in Google searches for 'staycation UK' over the same period

Google Analyics carried out by Simply Business

45%

Nights booked on Airbnb were for at least one week compared to 38% two years ago

Airbnb survey of 7,500 across five countries (Nov 21)

1 in 5 Say they are now more likely to work from home while on holiday versus before the pandemic (work from anywhere)

Skyes Cottages Staycation Index 2021

Projections NIGHTS

SEASON

100% OCCUPANCY

OCCUPANCY

TOTAL

217

Low

£63,720

55%

£35,046

70

Medium

£27,650

80%

£22,120

78

High

£52,650

95%

£50,018

365

Total

£144,020

74%

£107,184

Projections SUMMARY

SALES

OCCUPANCY

Year 1

£107,184

74%

Year 2

£120,104

79%

Year 3

£134,048

84%

Year 4

£140,750

84%

Year 5

£147,788

84%

In years four and five price continues to rise at 5% pa

Assumes after year one rates increase at 5% pa and occupancy increases at 5% pa for first three years

10% YIELD GUARANTEE*

*SUBJECT TO TERMS AND CONDITIONS

Financing

Holiday let mortgages A FLEXIBLE WAY TO INVEST Designed for properties which will be let out on a short-term basis as holiday accommodation providing a flexible way to invest in an increasingly attractive market.

TRADITIONAL BUY TO LET LESS ATTRACTIVE With staycations on the rise and economic uncertainty making traditional buy-to-let a less attractive option, short-term holiday lets could be a great way to get a solid return on property investment.

A SOLID RETURN ON PROPERTY INVESTMENT The holiday let market is forecast to grow 4% year-on-year, but this is a specialist market requiring plenty of flexibility when it comes to finding the right mortgage.

Assessing affordability on ‘holiday let’ applications RENTAL INTEREST COVERAGE

INCOME AFFORDABILITY

The lender will assess holiday let affordability using an average of the high, mid and low expected seasonal rental income. A reputable holiday letting agency must provide confirmation in writing.

The letting agent will need to confirm in writing a high, mid and low expected seasonal rate, the lender will then take an average of these seasons over a 24-week period to calculate the annual rental income.

The lender will use an Interest Coverage Ratio (ICR, which is the ratio of gross rental income to mortgage interest repayments) and a stressed interest rate to calculate affordability

145% ICR (again, example Lender specific, but generally between 125% – 145%) Stressed interest rate for purchase, capital raising remortgages and Let to Buy 5.5%

FOR PURCHASE AND CAPITAL RAISING REMORTGAGES The calculation is £76,440 / 12 months = £6,370 monthly rental £6,370 / 1.45 = £4,393 / 0.055 = £79,874 £79,875 x 12 therefore gives a maximum lend of £958,495

Based on PureServiced figures and the example lender lending criteria calculations (which will use a 24 week occupancy)

Summary of Holiday Let lending criteria AS PER MOST MAINSTREAM LENDERS

Maximum portfolio size of 10 mortgaged rental properties, irrespective of lender.

Maximum of 4 rental properties can be mortgaged with most lenders, whether buy-to-Let, holiday let, HMO, or a combination (maximum £2m value) Minimum income requirement: Single applicant £40,000. For joint applicants, if no individual earns £40,000, a combined minimum income of £60,000 is required.

Property investment / holiday letting must not be the primary source of income.

Maximum loan to value on any one property: 75% purchase or remortgage.

Maximum individual loan: £1,000,000 Rental income must be at least 145% of the interest payable on a stress rate of 5.5% for purchases and capital raising remortgages, and on 5.0% for like for like remortgages.

Property must be of standard construction and free of any occupancy restrictions. For this reason, holiday parks and property with local ownership clause are excluded.

Marketing the homes The majority of mortgage lenders prefer to see new holiday homes marketed by professional letting agents such as Pureserviced or national companies such as Booking.com or Sykes Cottages.

Professional agents have extensive marketing experience and so using them to promote your holiday home will typically result in the largest reach.

As a result, mortgage lenders will view their loan as much less of a risk should you go with a holiday letting agent, as they will surely help you to generate more bookings and income, especially at the start while you find your feet.

Tax Benefits examples

CAPITAL GAINS TAX RELIEF

DEDUCTIBLE HOLIDAY LET EXPENSES

SMALL BUSINESS RATE RELIEF FOR COUNCIL TAX

TAX ADVANTAGE PENSION CONTRIBUTIONS

Questions and Answers

Join us for a private 121 consultation

Contact us Phone 01271 347898

Email enquiries@bovisandharbour.com

Website www.bovisandharbour.com