Find out about the sister to fund to TIME:Freehold, which targets 4% per annum through investing in long income property.
For copies of the latest product literature and pricing information for TIME:Freehold please visit our Document Library.
TIME:Freehold is our original property fund with more than £290 million invested and boasting a 24 year track record of delivering consistent inflation beating returns uncorrelated with the stock market and property prices. It provides investors with diversified exposure to over 64,000 UK ground rents and is managed by our highly experienced team.
“The best risk-adjusted return record of any fund across the entire IMA unit trust and OEIC universe over five and ten years.” FE Trustnet December 2012
Strong inflows into TIME:Freehold has lead us to impose a 5% dilution levy on the fund, to protect existing investors against the costs associated with acquiring an increasing quantity of new portfolios of ground rents. The dilution levy is applied to all new investments into the fund, including top-ups made to existing holdings.
TIME:Freehold sits alongside its sister fund, TIME:Commercial Freehold, which launched in 2014. TIME:Commercial Freehold invests in long income property. The fund targets an income return of 4% per annum with potential for capital growth and we are delighted to report that since inception the fund has consistently exceeded its target return.
A ground rent, often a nominal amount such as £200 per annum, is created when a property is sold on a long lease. This typically occurs when a block of flats is built so that individual ownership of the leaseholds on each flat can be created. However, selling new houses on long leases is also common. Whether buying a house or a flat, the purchaser of the lease is obliged to pay the ground rent for the life of their lease and could forfeit their lease in the event that they default. It is estimated that £800 million of ground rents were created from newly constructed flats between 2005 and 2010. Lease lengths vary considerably with 125 years being the most common, however leases may be for as long as 999 years.
TIME:Freehold invests in a diversified portfolio of ground rents, with a focus on those with long leases to provide stability, which generate steady returns. Investing in ground rents provides the opportunity for both capital and income growth through:
The fund targets a total return of 5% per annum, which to date has always been exceeded.
We recognise our solutions are not appropriate for all circumstances and it is important investors receive the right advice, which is why we recommend you seek independent financial advice before choosing to invest.
If you are an investor who’s interested in our investment opportunities and you don’t already have a financial adviser, you may wish to visit the independent comparison site unbiased.co.uk to find a professional adviser in your local area.
The value of an investment in this product can fall as well as rise and investors might not get back the amount they originally put in. Neither past performance nor forecasts are reliable indicators of future results and should not be relied upon. The information on our website is not intended to constitute investment, tax or legal advice. We recommend you seek independent advice before investing in our products.
For full details of the risks associated with TIME:Freehold please read the product brochure, prospectus and application form.