This document is for information purposes only and does not constitute an offer or invitation to subscribe for or purchase interests in a residential development finance transaction.
The arrangement of commercial finance and second charge 'mezzanine' finance are not regulated activities in the uk and consequently Soane Capital, is not authorised and regulated by the financial conduct authority (“FCA”) in the UK. We believe that residential development finance is unsuitable for what the uk financial services regulator (FCA) define as a 'retail customer'. We believe the FCA have successfully defined the difference between a retail and professional customer and whilst Soane Capital is not a regulated firm, we make reference to FCA conduct of business guidance to help investors. We will only accept investors who are capable of making their own investment decisions and can realistically assess the accompanying risks. They must be able to satisfy the conditions stated in COBS3 within the prevailing FCA sourcebook (www.fca.org.uk) such that they could be categorised as one of the following:
per se professional
For the avoidance of doubt, we will not accept a 'retail' investor under prevailing FCA definitions.
Reliance on this document or any connected material for the purpose of providing property development finance funding may expose an investor to a significant risk of losing all of the capital committed or invested. Soane Capital offer no guarantees regarding the returns available from providing development finance be they equity or interest rate in nature. Providing development finance secured by second charge is a risky activity and must be viewed as such. Investors do not have recourse to the financial services compensation service (FSCS) or ombudsman service.
Furthermore, Soane Capital do not provide advice or guidance as to the suitability or appropriateness of residential development finance activities to an investors circumstances. It is the sole responsibility of the investor to be capable of making their own decision without guidance from Soane Capital.
Soane Capital do not provide tax advice or offer opinion regarding the potential tax liability of any development finance activity. Investors are strongly advised to seek tax advice at their own cost before investing.
Investors will not have liquidity during a development phase and monies committed cannot be released until the development is sold or refinanced. Typically this timescale will be measured in years. The risk level rating detailed on soane capital issued term sheets are based upon a subjective judgement by Soane Capital as to the degree of relative risk assumed in each development it becomes involved with. In this context, risk is defined as being the potential risk to capital invested as well as currency, interest, rental income, build complexity and locational aspects. The security provided e.g. first or second charge is a key component of any risk judgement made by Soane Capital. It is the sole responsibility of the professional investor to be capable of making their own decisions and take appropriate steps to assess the risk of each development finance transaction they enter into and establish its impact on their overall appetite for risk.
The information contained in this document has not been independently verified and no representation or warranty, express or implied, is made to and no reliance should be placed on the fairness, accuracy, completeness or correctness of the information or opinions contained in this document. None of Soane Capital or its advisers or affiliates shall have any liability whatsoever for any loss whatsoever arising from use of this document, its contents or otherwise arising.
Certain information contained herein has been provided by third parties and/or sourced from the internet, thus its realiability cannot be guaranteed.
Documents sent via the internet are not secure, accordingly soane capital cannot guarantee the document received is an original document nor are Soane Capital responsible for any changes by third party.