Audited annual report and financial statements for the year ended 31 March 2020.

Due to COVID-19 the FCA has extended the date for the filing of the audited annual report and financial statements by an additional two months. As a result the fund’s audited annual report and financial statements for the year ended 31 March 2020 will be published and made available to shareholders by 30 September 2020.

Dilution Levy

The levy and the rate that is applied is reviewed at every dealing day and may alter in line with the fund objectives. For the current levy applied please see the most recent factsheet.

Fund characteristics

 

Income security

Our properties generate consistent, long-term cash flows. This is achieved through long tenancies with an over-collateralised ground-rent structure. The ground rent is usually a fraction of the value of the leasehold property, the lessee or his mortgage provider will almost inevitably make payment to avoid forfeiture proceedings.

 

Lower volatility

The Weighted Average Lease Term (WALT) is more than ten times greater than many traditional UK commercial property funds. This combined with the over-collateralised ground-rent structure removes significant uncertainty in valuation.

 

Consistent rental growth

The majority of rent reviews are linked to inflation or have a fixed uplift, delivering consistent and relatively predictable level of rental growth.

 

Capital growth

The fund may benefit from capital value increases in its property portfolio. This can
happen in several ways, such as rental growth, lease extensions and the shortening
lease transferring the full reversionary value of the underlying property to the
landlord.

 

Track record

During a challenging decade for investment, the fund has protected investors’ wealth far more effectively than many other asset classes, with its income stream has proving highly secure over the fund’s 27-year history.

 

TIME experience

The TIME group has a long track record in long income property and manages over £3 billion of UK long income property assets. TIME:Freehold taps into the entire breadth of the award-winning TIME Group’s investment platform.

 

How does TIME:Freehold invest?

TIME:Freehold invests in a diversified portfolio of ground rents, with a focus on those with long leases to generate consistent returns. Investing in ground rents provides the opportunity for both capital and income growth through:

  • Regular uplifts in most of the rental income, linked to RPI, capital values or fixed uplifts
  • Sales of lease extensions, often to those obliged to extend a lease for secured borrowing purposes
  • Sales of the freehold to leaseholders looking to buy out the ground rent
  • Additional yield from provision of rooftop sites for mobile phone masts and other income such as insurance

 

 

Why invest in TIME:Freehold?

  • Focus on delivering consistent and predicable returns with capital growth prospects
  • Utilises tax efficient, PAIF (Property Authorised Investment Fund) structure
  • Multiple share classes to suit differing investor needs
  • Can be held within an ISA

 

What is a ground rent?

A ground rent, often a nominal amount such as £100 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. Lease lengths vary considerably with 125 years being the most common, however leases may be for as long as 999 years.

 

Find out more

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 would like to find out more about TIME:Freehold please speak to your local Business Development Manager or contact us.

 

Potential investors

If you are an investor who is interested in our investment opportunities and you do not 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.

 

Important Information

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.
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