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Key risks

Investing in property can be rewarding but, as with any investment there are risks. The Info Packs and the Investment Terms and Conditions cover the risks specific to a particular investment but it is also important that, before investing, you understand the following general risks.

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Your personal decision to invest
We do not provide financial, investment or tax advice. You should read the Info Packs carefully before making an investment. It is your responsibility to decide whether to make an investment, and you must do so solely based on information contained on the Platform, together with any independent knowledge that you may have and professional advice that you may have received. If you do not understand something about an investment or have any doubts about whether an investment is suitable for you then you should seek independent professional advice.
Loss of capital

Property prices can go down as well as up.

Different property types or those in different areas may be more or less susceptible to reduced or negative growth.

It is important to understand the differing risk profiles of loan and share investments. You should consider the details in the Info Packs including the loan to value of each investment.

Our loans are secured by a charge against the properties. They are not deposits and security does not guarantee repayment. In the event of a share or loan investment performing badly you may lose all or part of you initial investment. You should only invest as much as you can afford to lose and as part of a diversified portfolio. British Pearl seeks to minimise all identifiable risks, however your investment is ultimately exposed to the UK property market.

Your income may vary

Share dividend income projections are a guide and not guaranteed. Dividends are paid from net rental income and may be lower than expected or cease completely for a number of reasons, for example, uninsured damage resulting in a void period owing to the property being uninhabitable.

Loan interest payments may not be paid every month if an SPV is facing cash flow issues. If they are not paid, the amounts due will continue to accrue. This means that each interest payment that is missed will be paid at a later date if there are sufficient funds to do so.

Past and future performance

The past performance of an investment is not a guide to its future performance and should not be relied on when making an investment.

Our projections of future performance are based on all known information, internal calculations and opinions of British Pearl at the time the projections were made. These are not guarantees and are subject to change at any time and should not be relied on.

Investments are not covered by the Financial Services Compensation Scheme

Your investments are not protected by the Financial Services Compensation Scheme (FSCS). This means that you will not be able to claim compensation if your investments do not make payments or repayments in line with your expectations.

Uninvested funds in your investor account (Wallet) are held in a segregated client money account at Barclays Bank UK Plc. The funds are separate to British Pearl’s and are protected by the FSCS up to your personal limit of £85,000 per financial institution.

For full information please refer to the FSCS website

The need to diversify your portfolio when you invest

Diversification means spreading your money across investments of different kinds and profiles in order to reduce your overall risk. Diversification is a sensible way to invest but it cannot eliminate all types of risk.

We highly recommend that you only invest a portion of your investable funds in any single investment and as part of a balanced portfolio.

Risks associated with development projects
The development of properties may exceed budgets. Unforeseen events such as changes related to building permits, planning errors or other aspects of the development, shortage of necessary equipment, or adverse weather conditions, or other unforeseen events may cause cost overruns and delay or frustrate completion of a project. There can be no assurance that any overrun will be adequately covered by insurance. In the event of a budget overrun the investment may need to seek additional financing from outside sources in order to complete the development. No assurance can be given as to the availability or terms of such financing. In the event of substantial budget overruns, there can be no assurance that costs will be recouped. Any of these events may have a significant impact on investment results. There can be no assurance that the investment will achieve its investment objectives.
Lack of liquidity

Your investments are not liquid. This means you may not be able to sell your investment until the Investment Exit Date.

Our Resale Market provides an opportunity to exit your investment early. You can list your investments for sale and connect with potential buyers. However, there is no guarantee that your orders will match with a buyer when you want and at the price you are asking for.

The Resale Market is only available once an investment is fully sold. There is no guarantee that the investment will be fully sold before the Investment Exit Date.

You should consider your investment to be a long term commitment. You may not be able to exit before the end of the term and properties may take several months to sell. Please see Exit and Control.

Exit and control of your investment

As investment manager, British Pearl reserves the right to dispose of a property investment earlier or later than the Investment Exit Date, for example in order to crystallise gains or cut losses.

This may result in losses or adverse tax consequences for investors.

If a sale is delayed, you will continue to receive loan interest and/or dividends where net rental income is generated.

Taxation
You are responsible for the administering of your tax affairs, which may include capital gains and/or income tax. Your tax treatment depends on your individual circumstances and may be subject to change by HMRC in future. We do not provide tax advice and you should seek this independently before investing. It is your responsibility to ensure that your tax return is correct and is filed by the deadline and that any tax owing is paid on time.

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Your capital is at risk. The value of your investment can go down as well as up and you may get back less than you invest. Past performance is not a reliable guide to future performance. Your investments are not protected by the Financial Services Compensation scheme (FSCS). Forecasts are not guarantees and performance may vary. Our Resale Market opens only when investments are fully sold. Exiting early, when you want and at the price you want is not guaranteed. Risks include the total loss of your share investment or loan. Tax treatment depends on individual circumstances and may be subject to change in the future. If you are not sure about investing, seek independent, professional advice. Before investing, read our Key risks.

British Pearl ® is the trading name of British Pearl Limited (Company No. 7151774), a company authorised and regulated by the Financial Conduct Authority (Register No. 674693) and British Pearl Finance Limited (Company No. 10575280 and Register No. 770867), which is an appointed representative of British Pearl Limited. Both companies are wholly owned subsidiaries of British Pearl Group Limited (Company No. 9701436) and all are registered in England and Wales at 4th Floor, 7-10 Chandos Street, Cavendish Square, London, W1G 9DQ