FAQs
How will The Collaborative London increase the value of my investment?
We start with a raw, uncut diamond of a property and transform it into a valuable, polished gem. Our journey begins by sourcing Prime Central London (PCL) properties below market value through our extensive network built over years of experience.
Every opportunity undergoes thorough examination by our team of experts, leaving no stone unturned.
Once vetted, we collaborate with trusted sources and leverage bank finance to maximize returns for our partners.
Furthermore, we enhance the property's value through our expertise in interior design, project management, and refurbishment. With a keen understanding of market demands, we ensure we achieve maximum value for our investments.
How does The Collaborative London make my investment safe and secure?
At The Collaborative London, we are focused on Prime Central London properties. We want to give our partners a low-risk, high-return strategy that is asset-backed.
At The Collaborative London, we put our partners first. We make sure that they have direct ownership of the property. This means that any money invested, is also secured against the property purchased. Whether this is via a company or an individual.
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We also offer a guarantee that means that if the project makes any losses, these will be shared equally.
How long will a typical investment in Central London properties take?
We typically try to exit deals in 12-16 months.
However, with property timing is key.
As our investing partners, we are here to ensure that you exit at the earliest time, to maximise returns.
What is my return going to be?
Our target return on money invested is 20% annually.
What areas are The Collaborative London investing in?
We are focused on investing in Prime Central London, areas such as Mayfair, Knightsbridge, Kensington and Chelsea.
How do I know what you are presenting is below market value?
We're committed to deals that are below market value because our aim is to add value at every stage of the process.
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Before making any decisions, we meticulously assess a property's market value by examining its comparables.
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Additionally, we conduct thorough analyses of similar properties to estimate their potential value once developed.
We share our findings with our partners to ensure transparency and clarity in their investment decisions.
What is my return net of taxes?
If we use a simple example and say, that investment is £100,000 and we have made 20% returns, you have made £20,000.
If we take 19% of this amount, it will be a tax of £3800.
This leaves us with a net profit of £16,200. This means your net return on your money is 16.2%.
Will The Collaborative London be transparent about the project's costs of refurbishment?
At the outset, we will provide you with a specification report showing you the type and quality of finishes included in the property's interior design.
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The Collaborative London will also provide fixed costs for the refurbishment, including interior design and project management.
Partners will have complete transparency on the total cost and specification of the project.
How do I know that exit price will be achieved?
At The Collaborative London, we carefully calculate exit values to predict future exit prices, steering clear of speculative increases in property prices.
We collaborate with trusted valuers to obtain their expert opinions on the values achievable.
These exit values are thoroughly analysed, drawing insights from the selling prices of comparable properties.
What are the taxes that I will have to pay?
We seek specialist advice on a case-by-case basis, tailoring our approach to each unique situation. Typically, we opt for a UK registered company to purchase properties. The two central taxes affecting our transactions are:
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Stamp Duty Land Tax (SDLT), payable upon property purchase. We always include the exact SDLT amount in our financial appraisals for any presented opportunity.
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Corporations Tax, applicable to companies holding and developing properties. The Collaborative London treats properties as stock, exempting them from Capital Gains Tax. However, Corporations Tax (at 19% on NET Profit, post-expenses) is mandatory.
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UK residents partnering with The Collaborative London receive profits as dividends, subject to regular income taxes.
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Non-UK residents, particularly partners in the Middle East, receive dividends without additional tax obligations.