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Glossary

Service Charge

Where a property shares communal areas between different owners, there is generally a charge applied to cover the cost of the maintenance of those areas. This is most common in a block of flats where a management company may be employed to ensure that common parts are kept clean, decorated and of a high standard so that the overall property value is supported.

Shares

An ownership interest in a company which entitles the shareholder to certain rights, for example a share of the profits or dividend payments from the company.

Share Investor

Is an investor who purchases shares in an SPV.

Share Valuation

The share valuation is the latest valuation expressed on a per share basis.

SHIELD

SHIELD is a contingency fund that we have the discretion to make available to any SPV requiring liquidity support where the SPV Reserve has been depleted. It is possible that an SPV could encounter a number of negative cash flow events at the same time, requiring funds in excess of the SPV Reserve and rental income. In such circumstances, SHIELD acts as a second line of defence for the SPV after the SPV Reserve has been fully utilised. SHIELD is funded directly from British Pearl revenues and can be deployed to any SPV, unlike the SPV Reserve, which is property specific.

Special Purpose Vehicle ('SPV')

Each property investment is owned by a special purpose vehicle (“SPV”), which is a UK limited company incorporated for the 'special purpose' of purchasing a single property. This is done so that each individual property is held completely separately to British Pearl so that any risks to British Pearl as a business will not affect individual SPVs.

SPV Reserve

Each SPV will have an SPV Reserve. This will be an amount of money that operates like a sinking fund. Some of the rental income that is received is put aside in order to help to cover costs such as void periods, maintenance and other events that require cash.

Stamp Duty Land Tax ('SDLT')

A property transaction tax levied by HMRC. It is incurred by the SPV on purchase of each property. The latest SDLT rates are published on the Government's website.

Stamp Duty Reserve Tax ('SDRT')

A transaction tax levied by HMRC for acquiring shares in property investments and is only applicable to purchases made through the Resale Market. Note that it is different to SDLT and the latest SDRT rates are published on the Government's website.

Surveyor

British Pearl engages RICS qualified surveyors in order to professionally assess proposed property purchases and to provide ongoing valuations.

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Your capital is at risk Investing in property involves risk. The value of your investment can go down as well as up and historic performance is not a guide for future performance. Any projections of future performance are based on all information known at the time of share investment or loan, and internal calculations and opinions of British Pearl. These are subject to change and are not guarantees and should not be relied upon as such. Risks include the total loss of your share investment or loan, variable rental income due to property not being rented or a depressed rental market, and inability to sell your share investment or loan due to lack of a buyer. Investing with British Pearl falls outside the remit of the Financial Services Compensation Scheme. Please refer to the Key Risks section of this site for a more comprehensive description of the risks involved.

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