The Island Sanctuary - 100% Finance

This is an excellent opportunity to invest in a brand new property in any of the above Caribbean locations (Barbados, Dominican Republic & St. Vincent’s) with only £1000 ($2000) required. See the example process below:

• £1000 ($2000) non-refundable reservation fee, required for reservation of a specific property.
• 30% deposit required (less £1000 ($2000)) within 45 days of reservation. Should you choose to borrow the 30% deposit; the developer will pay the loan repayments, including interest, for the 30% deposit until completion of the specific unit you have reserved. These payments will then be added to the purchase price upon completion.
• Example (Sterling): Property price £200,000. £1000 reservation fee paid. The deposit = £200,000 x 30% = £60,000 - £1000 (reservation fee) = £59,000. Interest on £59,000 @ 6% p.a. = £295 per month, paid for 24 months by the developer = £7,080 added to the purchase price upon completion.
• Example (US Dollar): Property price $370,000. $2000 reservation fee paid. The deposit = $370,000 x 30% = $111,000 - $2000 (reservation fee) = $109,000. Interest on $109,000 @ 6% p.a. = $545 per month, paid for 24 months by the developer = $13,080 added to the purchase price upon completion.

Due to the significantly discounted off-plan contract price and the capital appreciation during the construction phase, it is anticipated that the £200,000 ($370,000) purchase price will have grown to a property value at completion of circa £325,000 ($601,250)

At this point a 70% loan to value guaranteed mortgage is available and therefore you will be able to borrow up to £227,500 ($420,875). This is clearly ample to pay for the £199,000 ($368,000) (purchase price less £1000 ($2000) reservation fee) that you owe as well as the accrued interest of £7,080 ($13,080) - from the above example.

Assuming you borrowed the maximum loan to value mortgage, available from the example above, you would borrow £227,500 ($420,875) on which the annual interest payment would be £18,200 ($33,670) based on a rate of 8%. The rental guarantee of 10% of your purchase price of £200,000 ($370,000) will generate you an income of £20,000 ($37,000) each year, should cover your mortgage payments. If you wish you could retain
the £59,000 ($109,150) loan you took out for the deposit, pay the interest yourself each month, from completion onwards, and use the money to invest in a further investment property purchase.

We would be delighted to answer any further questions you have regarding the exciting opportunity as well as helping you to make your reservation in the Caribbean. Subject to status and conditions apply - please contact us for further information.

If cases where we are unable to obtain finance for you, we will be prepared to refund the £1,000 ($2000) reservation fee.

Financials - No ‘money down’ deal explained (except £1000 on reservation).

1. Deposit Bridge

We arrange a mortgage/re-mortgage on your UK or Spanish property to raise the initial 30% of purchase price deposit required after 45 days on exchange of contracts. (If you do not have sufficient equity in a property to enable us to raise the 30% you will need to provide this sum). The interest on this 30% deposit will be paid for you by the developer and added to the purchase price on completion. The typical mortgage interest rate in Spain is at the time of writing 5%, and in UK 6%.

2. Developers Finance

As with most ‘off plan’ purchases the developers require stage payments as the building reaches certain stages of completion. This finance is provided to the developer for you by First Caribbean Bank. The current interest rate is 8%. Again the interest due is ‘rolled up’ and added to the amount outstanding.

3. On Completion

On completion First Caribbean Bank guarantee to give you an interest only mortgage equal to 70% of the then property value. This should be sufficient to clear all the previous borrowing and interest including the 30% deposit and interest. (Current Rate 8%)

For instance, a one bedroom Barbados apartment as an example, currently has a purchase price of c.£200.000. The anticipated value on completion in 24 months – based on similar properties current values – is conservatively £325,000 (this does not allow for the typical 15% p.a. property price inflation over the next two years). The maximum mortgage would then be 70% x £325,000 = £227,500. And yet the total purchase price with all accumulated interest is only c.£215,000.

High Rental Income

Example 1: Barbados Resort, 1 bedroom apartment

Actual statistics Cheapest 5 star room on the island currently averages £400 per night (e.g. Royal Fairmont Hotel). The average occupancy rate = 85%

Our conservative figures are based on £325 per night and only 75% occupancy.

On this basis the income is £88.968 and as it is shared 50/50 with the hotel =£44.484.

Less your mortgage interest payments at say 8% interest on £215,000 = £17,200.

Therefore your cash surplus = £27.284

Example 2: Barbados Residential, 1 bedroom apartment

Actual statistics Cheapest 5 star room on the island currently averages £400 per night (e.g. Royal Fairmont Hotel). The average occupancy rate = 85%

Our conservative figures are based on £325 per night and only 65% occupancy. Also a 20% deduction for agents’ letting fees. On this basis the net income is £61.685.

Less your mortgage interest payments at say 8% interest on £215,000 = £17.200.

Therefore your cash surplus = £44.485

Example 3:

This is identical to Example 2 per night but assumes a much more conservative average room rate of £225 rather than £325.

On this basis the net income is £42.705

Less your mortgage interest payments at say 8% interest on £215.000 = £17.200

herefore your cash surplus = £25.505

Investment Information