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Mustard Seed Property

Share Offer

£250 minimum (individuals), £1,000 (organisations)

Risk factors

All investment and commercial activities carry risk, and investors should consider whether Mustard Seed Property is a suitable investment for them in light of their own personal circumstances.

This offer is not covered by the Financial Services Compensation Scheme.

General Investment Risks

MSP wants to be fully open and transparent to its potential investors about the risks as well as the benefits of investment in community shares. MSP wishes to make the following general points explicit:

  • An investment in community shares is an investment in a trading business, not a loan or a deposit, and the rates of return are not guaranteed. This investment should be considered as medium to long term. Your shares may not be readily convertible to cash should you need to withdraw them.
  • Like many investments, community shares are at risk and you could lose some or all of the money you invest. Unlike deposits with high street banks, community shares are not covered by the Financial Services Compensation Scheme, nor is there any right of complaint to the Financial Ombudsman Service. Any dispute may be the subject of arbitration as set out in the Society's Rules.
  • As a member and shareholder of MSP you could, if MSP is unable to meet its debts and other liabilities, lose some or all of your investment held in shares. However, your liability is limited to the amount that you have paid for your shares.
  • Your investment in your share account may receive interest but does not enjoy any capital growth. It is primarily to support your community rather than make a profit for investors. As a Society, the maximum return offered to investors by way of interest will always be limited.


Government and Policy Change

Revenues for leases are currently underpinned by Housing Benefit. MSP's partners also rely on support contracts, which are usually funded through Local Authority budgets. Changes in policy can affect these levels.

Mustard Seed Property leases properties to partners on internally repairing and insuring leases, meaning this is a risk that is shouldered by the partner. In most instances the alternative to existing support contracts is residential care or hospital, both of which are more expensive to the state.


If residents move out or are slow to take up anticipated occupancy, some rooms may be left vacant for a time, putting pressure on the partners.

Mustard Seed Property leases properties to partners on internally repairing and insuring leases, meaning this is a risk that is shouldered by the partner. Rents are set to allow for some level of voids as well as maintenance and management costs.

Property Development

Buying and developing property carries both cost and time overrun risk. Both affect the ability to deliver expected financial yields.

Valuations and appropriate surveys by qualified personnel, including detailed costs reports for all significant refurbishment work, are carried out ahead of purchases. Some modest bank borrowings could be sought with cost overrun if there is insufficient equity.

Partners – Commercial & Impact

Our partners may get into financial difficulty or fail to provide appropriate support to individuals.

Mustard Seed Property carefully assesses its partners based on quality and experience. Partners are required to share their annual accounts and provide an annual impact report for each property they lease.


Interest Rates

If the Bank of England raises interest rates by more than 1%, our mortgage payments would increase by £1,200 pa on current borrowing levels. This would begin to impact on the available return available to investors.

Mustard Seed Property has a policy to continue to reduce its gearing through raising community shares. Whilst some interest rates are expected in the near term, they are not expected to be more than 1% in the immediate future.

Offer Closed

As of the 30th November 2018 this offer is closed

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