Research & Resources
At Baron & Cabot we use several independent sources to form the basis of the information we offer to clients as a guideline and this also forms the basis of our research to private investors, financial advisors and institutional investors.
We use each resource to help build a clear and concise investment case for each project, based on 3rd party independent research which we are happy to share with our clients and financial advisors.
Some of these paid research firms we pay monthly and others annually, others are free online resources for research into the UKs economy on a whole, the city the development is within, the postcode areas rentals ability and even down to the exact location within 75m radius of the site to ensure there are no nasty surprises from up and coming developments. This process also allows Baron & Cabot to highlight any up and coming benefits a location may have which increases your returns.
This level of service and research and background work is uncommon, it gives our clients confidence through clarity.
City and location of development
Developer and development
We see and hear about developments not going ahead, developers going bust and so forth. To mitigate and lower this risk we go through a strict due diligence process with each development and developer, no matter how long we have known the firm for. Each developer we consider is asked a total of 54 questions about each development.
Finance & portfolio structure
Many clients ask about finance and taxes – Baron & Cabot are not mortgage brokers or financial/tax advisors. We do however have a vast network of these we can leverage for our clients when the need arises. Baron & Cabot can also, if requested, assist with company formations for the purpose of property purchases.
The developer must have a track record of completing on time, be solvent and be able to show full ownership of the sites they have worked within and propose to work on with the ability to build without using clients cash – fully funded sites only. We won’t work with any developer that has a bad reputation, poor track record or has shown lack of assistance to clients when needed, Baron & Cabot do our uppermost to put our clients into the very best developers in then UK. The developer has to be able to show they have ample resources to commence and complete the project within the expected timeframes too.
Once we have been offered a new development, we go through the lease to ensure there are no unusual caveats that will; cause our clients issues later on in the life of their investment. We make sure the lease length is healthy, ground rent and service charges are well within expectation, the split of unit type is applicable to the area, the size of the apartments meet lending standards, deposit amounts no more than 30%, clients cash is safe within an escrow if off plan and NOT used for the build. We will ask to see planning permission, leases and proofs the land has been purchased and the site is fully funded, we’ll also ask to see the S106 to ensure the local authority is happy with the project and all in all, it’s ready to go ahead.
Once we are happy with this aspect, we then pass the project to three mortgage brokers. One in Hong Kong, one in UAE and one in the UK. We ask questions like – can an average client in your jurisdiction buy this apartment with finance, is the warranty safe and in good order, is there a healthy number of lenders available, is Sharia finance possible.
Finally, once we have the ‘all go’ from each mortgage advisor, we are happy to talk to our clients about the project.
As part of the research, we also speak to solicitors about each project to gain a clear idea of what our clients, both national and international should be expecting to pay for their legal fees.