Throughout the life of the co-ownership bond the investor gets a set annual income by way of interest on the sum invested rising from an initial
- 4.5% pa rising on each 5 year anniversary to
- 6.5% pa at the end of the bond
- Providing an average of 5.5%
There is a terminal bonus paid on redemption linked to the Halifax Property Index which at the average of historic UK property growth may add the equivalent of an additional 3% pa. Effectively an average of 8.5%.
The intention is to only invest in houses and flats in the UK but excluding Scotland, Northern Ireland and Greater London.
Over the last 31 years, the Halifax House Price Index has shown the following growth pattern for this subset of the UK Market.
The JEIP pays interest every quarter for 25 years that increases every fifth year through the receipt of payments from Resident Partners with an initial rate of 4.5% per annum rising half a percent every 5 years.
Based on a projected HPI of 6% pa compound growth over the life of the bond, if we consider that capital return in addition to the income return, the total return to bond holders including the terminal bouns is effecitvley this total return pa.
Bonds are currently only available to investors defined as Professional Investors, High Net Worth or Self Certified Sophisticated Investors under Finance Services and Market (FSMA) Act 2000.