Frequently Asked Questions
Do you accept company applications and/or joint applications?
Yes, both company and joint applications are accepted subject to receipt of the necessary anti-money laundering (AML) documents for all company directors and any joint applicants respectively.
Are the properties managed or do I need to be an active landlord?
Sterling Property Portfolio ensures the management of everything – your investment is completely hands-off.
What security is in place for investors?
The independent security trustee, More Group, holds a charge over all company shares on behalf of investors. This means the investors effectively own the whole company and all the assets within it until their funds are repaid.
Which regions of the UK do Sterling Property Portfolio invest?
We consider ourselves a nationwide portfolio and will consider investing in any part of the UK. As a general rule of thumb, we invest within a 1 mile radius of town or city centres. We do, however, believe that current market conditions point positively towards the North of England with most opportunities presenting themselves in secondary cities and the fringes of bigger cities.
Why are the interest rates higher than most buy-to-let investments?
This is because we target high-yielding areas often in the North of England. In addition to standard residential single let properties, we also invest in HMOs and commercial property which tend to produce a higher yield. Purchasing below market value also drivesthe yield higher due to spending less and getting the same rent in return.
Can I withdraw my investment before 5 years?
We will consider early withdrawal requests and accommodate where possible. This however is not guaranteed, and investment should not be made if there is a high likelihood that funds will need to be accessed before the 5-year maturation.
How do you make money?
Most of the rental income produced by the properties is paid out to investors as interest with a small amount being used to cover the business running costs. Anything above this is reinvested back into the business providing further security for investors. Sterling Property Portfolio benefits from the long-term capital growth of the assets purchased.
How do I know the company owners will not misspend the company income?
We would like to make investors aware that it is written into the legal binding Investment Memorandum that the owners of the company are not allowed to pay themselves a salary or any dividends until all investors are repaid in full. The company bank account will be regularly checked by the security trustee More Group Capital Services and investors can also ask to see our bank statement any time.
Are there any management fees?
There are no management fees nor are there any fees upon investment. You receive the entire 8% per annum as advertised.
When are investor returns paid?
All investors are paid on the same four days each year: March 31st, June 30th, September 30th and December 31st. If a client wishes to focus on capital growth and receive all interest at maturation along with their initial investment, that option is also available.