The Old Bakehouse Owners Group:
25% share price £350,000, plus legal and setup costs estimate maximum 10%.
This page contains initial information about the group ownership scheme for The Old Bakehouse. Discussions are currently taking place between a number of interested parties, and persons interested in the possibility of taking a share are invited to contact firstname.lastname@example.org as a matter of urgency, if they wish to participate in finalising details. Please also feel free to call Steve Last on +44 1628 486350.
The following is an outline of the basic organisational and financial aspects of the group. For full details of the property itself please see The Old Bakehouse, Tuckenhay, website.
1. The Old Bakehouse (with its furnishings and other equipment) is the only asset of a UK, company formed solely for the purpose of owning the property. Ownership is acquired by transfer of shares; members of the Group are the only shareholders in, and hence control this company. This makes disposal of a share in the group simple.
2. The members will be signatories to a Shareholders Syndicate Agreement. This will cover the rights and obligations of the members, based on principles of maximising individual freedom of choice and fairness of treatment. The heads of agreement will include but are not limited to Shareholdings, Capital and Running Costs, Voting, Share Sale and Transfer, Meetings, Budgets, and Disposition of Assets and Profits. It includes clauses to guarantee that members can get out of the group with a fair share of the true value of the property. It covers how minority interests are protected, so no individual member can be "locked in" to the group and unable to dispose of their share at a fair price, while at the same time, a minority cannot hold the rest to ransom, so everyone's interests are protected. It addresses how rentals can be dealt with, as well as use by friends and family.
3. Associated with this agreement are attachments covering such vital issues as how usage is sorted out between four owners without the constraints of a rigid rota of times. Usage is based on 3 seasons of 4 months each, with each owner having an initial opportunity to choose up to 3 weeks usage each season, approximately 6 months in advance, with further weeks being available after this first round up to a total of 13 weeks a year. After you make your usage requests, usage is allocated accordingly, allowing owner members total flexibility to determine when they wish to use the property. If two members request usage simultaneously, actual allocation will be determined by a pre-agreed priority scheme, in which each individual memberís priority varies from season to season and year to year. This results in a very high degree of user satisfaction, guaranteeing equal opportunity to use the property at the time chosen by each owner to suit their own requirements. This flexibility is usually greater than is achieved by individual owners who rent their property to cover some of the cost of ownership. After medium and long term usage is planned, members simply advise OwnerGroups of their wish to use the property at short notice, and this is allocated on a first come, first served basis.
4. Once the group is formed with its four owners (three plus the current owner), day-to-day management and usage allocation will initially be handled by The OwnerGroups Company under a renewable contract. Membersí practical obligations are limited to paying their monthly share of an agreed budget, and telling OwnerGroups when they plan to use the property.
5. The agreement you sign on joining covering your rights and obligations is an agreement with your co-owners. You have no personal commitment to or relationship with the OwnerGroups Company. OwnerGroups merely handles administration for the group, and can be replaced by the owners at any time if they wish. Unlike a commercial fractional ownership scheme, The OwnerGroups Company does not have any financial interest in the property or its usage. OwnerGroups has operated such schemes for many years with other group-owned properties with highly satisfied owners. Other than as contracted organisers of the syndicate, The OwnerGroups Company has no connection with any of the group members, and our continued appointment is subject to majority decision by the group members. No individual member of the syndicate will have overall control of the groupís funds or responsibility for routine administration.
6. Cost of share and operating costs. The share price will be £350,000 for a 25% share in The Old BakeHouse, essentially as seen on the website, i.e. inclusive of all furnishings and fittings etc., as well as a 5.5metre RIB powerboat. Transfer and set-up costs are still be determined but are not expected to be more than 10% of the share cost, the majority of it being the initial stamp duty. Similarly, the monthly payment towards the group budget will be known prior to any commitment to purchase being requested, and will be based on the known historic running cost plus a margin for reserves such as major maintenance. As an indication, a monthly subscription of £400 would provide as much as £19,000 per year which should be more than sufficient to cover all operating costs of house and boat.
Please look at other pages on this website for further background. An economic evaluator will provided shortly to enable you to test the value of participation against your own personal desired usage and economic circumstances.