What is the 'Provision Fund'?

You won’t be asked for any money to fix a leaky tap or unblock a drain. There is a provision fund on each property investment, which is usually 1% of the purchase price per annum (please check each individual investment case as this may vary) and raised in the initial fund amount to cover any unexpected costs.

The provision fund should sufficiently cover any maintenance costs for the full term and is put in place to encourage a consistent yield and to prevent rental income being affected by unforeseen costs. In the unlikely case that a provision fund is fully used within the term then any smaller costs afterwards would be deducted from the rental income before the remainder is distributed to investors.

For larger costs, the properties are covered by our own bespoke insurance policy or, if necessary, we can cover any uninsured costs via an interest free loan to the SPV. This means we can replace a roof or repair any malicious damage without a direct cost to the investor.

If any of the above does occur, you will be kept informed every step of the way