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Student Co-op Homes

Student Co-op Homes Shares

£50/£250 minimum

Student Co-op Homes will pay interest each year on the investment, which is planned to be 4% starting to accrue 6 months after the close of the offer. The interest will be reinvested in your share account, increasing your capital, until such time as it is withdrawn. Student Co-op Homes will send you an annual statement of your share account.


Minimum raise for offer to proceed

£100,000


Financial return

Student Co-op Homes will pay interest each year on the investment, which is planned to be 4% starting 6 months after the close of the offer. The interest will be reinvested in your share account, increasing your capital, until such time as it is withdrawn. Student Co-op Homes will send you an annual statement of your share account.

Investors can choose at their discretion to receive interest at the full rate of interest, half rate, or to receive no interest.

Each year, the Board will review the rate of interest paid on shares in relation to financial performance. They will always aim to pay interest at the rate agreed initially (4% in this case). Interest rate is capped in their rules to a maximum of 5% per year, or 2% above the Bank of England base rate, whichever is higher.

Investors can choose not to receive the full rate of interest should they wish to in order to further support Student Co-operative Homes. Investors can therefore apply to receive interest either at the full rate, at half the full rate or none.


Social return

Unlike the crowdfunded property investment vehicles that encourage ordinary people to speculate on buy-to-let properties, Student Co-op Homes model is based on fairness and brings benefits to all: students, local communities, our investors and the co-operative economy. The only people who will lose out will be unscrupulous private landlords and letting agencies, which they think is actually another win!

In their 2019 raise, SCH is hoping to support three student housing co-ops in Glasgow, Nottingham and Brighton, but should they reach the full £2,000,000 many more student housing co-ops can be supported.


Minimum investment amount

£250 is the default minimum investment in this offer. Any investment of £250 and above is eligible to receive interest.

Anyone can also become a member of the co-operative by investing a minimum of £50. Investment below £250 is treated as a membership investment and is not entitled to interest.


Maximum investment amount

Maximum share subscription for an individual: £100,000

Maximum share subscription per organisation (which is not a registered society): £100,000

Maximum share subscription per society: unlimited


Getting invested money back

Members can request withdrawal of shares from one year after the closing date of this offer. Investment can normally be withdrawn subject to a three-month notice period (withdrawals may take place in less than three month for small amounts). Allowing share withdrawal always remains at the discretion of the board of directors. The board can suspend the right of investors to withdraw shares to protect the viability of Student Co-operative Homes.


How secure is invested money?

In the unlikely event of Student Co-operative Homes becoming insolvent, or of an orderly winding-up, the proceeds from the sale of the Society’s assets and their cash would first be used to pay off all their creditors and any funds left at that point would be used to pay back members as much investment as they have outstanding as possible, and any interest due, on a pro-rata basis.

Although SCH is registered as a Society with The Financial Conduct Authority (FCA), the issue of withdrawable shares in the Society is not regulated by the FCA. Like many investments, these community shares are at risk and you could lose some or all of the money you invest.

Unlike bank deposits, community shares are not covered by the Financial Services Compensation Scheme, nor is there any right of complaint to the Financial Ombudsman Service. If you are considering investing a significant amount then you may wish to seek independent financial advice before with specialist knowledge of social investments.


Keeping track of your investment

The details of your investment are recorded on your share agreement with the Society. 

Each year SCH will publish a set of accounts.


Membership

Voting rights are held solely by members. Any investor, no matter what size their investment is, will become a member of Student Co-op Homes with one vote.

As a co-operative, the majority of the power and influence must be with members who are in a trading relationship with SCH. These are student housing co-operatives across the UK, and they have 75% of all votes at general meetings of the society and on all resolutions. The student housing co-operative members also elect up to 8 members of the board (no more than 2 board members can come from any one student housing co-op).


Nomination and Inheritance Tax

In the event of the death of a member, the repaid value of the shares will normally be added to the estate for probate purposes. You may elect to nominate a recipient for the value of the shares (but only up to the amount set out in law) and thus (under current legislation) remove the value of the shares (up to the amount set out in law) from your estate for probate purposes i.e. the shares may pass to the nominee outside the Will of the deceased. The nominated property will nevertheless form part of the deceased’s estate for Inheritance Tax purposes, unless the estate is an excepted estate.


Who can invest

Individuals over the age of 16, charities, trust funds, Small Self Administered Pension Schemes, nominee services and corporate entities, groups and associations, and other organisations may invest in this offer.

(note: only people aged 18 or above can serve as directors).

£92,36062%
Applied for to date, of
£150,000 target
Student Co-op Homes is seeking £2,000,000 in investment of which there are four milestones

  • £150,000
  • £350,000
  • £1.15m
  • £2m

once each milestone is reached the totaliser will be advanced to the next one

Need help?

The Ethex team are here to help from 9am to 5pm

https://www.ethex.org.uk/savings--investments_16.html

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