What is the forecast annual income?
The forecast annual income is the current gross rent being achieved (if the property is untenanted then expected market rent will be used) less known monthly costs. Where a cost is not billed monthly it will be accrued.
What costs are not included in the forecast annual income?
For our supported living properties on long term leases the only additional costs we would anticipate are costs relating to repairs that are not the responsibility of the tenant and certain safety checks and certifications that may be required.
For properties let on an assured shorthold tenancy (AST) other costs that could be incurred include, for example, tenant finding fees, maintenance costs and capital expenditure.
Fixed costs & contingency (FCC)
These are the upfront costs involved with the purchase of the property and comprise stamp duty, legal fees, Property company set up fees, Housemartin’s arrangement fee and the initial contingency fund. These costs are recoverable by the investor if the investment is sold on the Exchange.
Income, expenses and contingency breakdown
Each property has a full breakdown of all income and expenses by month available on the ‘Property details’ page. This also includes movements in the contingency fund.