All you need to know - Riverstone Kensington - Flipbook - Page 30
Costs
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Option 3:
• Membership Fee: Half-price and 昀椀xed “for-life” and won’t change during your period
of ownership
• Deferred Fee: 7% per year (capped at 35%) calculated against the sale price
achieved or open market value, if greater, when you sell your apartment
This option might be attractive to buyers focused on keeping their Membership Fee
as low as possible, be that for a昀昀ordability reasons or in anticipation of future care
costs. Equally, they might simply prefer to enjoy the bene昀椀ts of living at Riverstone at a
signi昀椀cantly lower annual cost and don’t mind if they (or their representatives) have to
pay a higher Deferred Fee amount after living at Riverstone.
We set out below some worked examples of how the Membership Fee and Deferred Fee
across the three Value in Choice fee structures would be calculated:
Option 1
Deferred Fee %
Option 2
Option 3
4% per year
6% per year
7% per year
(capped at 28%) (capped at 30%) (capped at 35%)
Membership Fee Type
Index-Linked
Fixed for Life
Half Price &
Fixed for Life
Purchase Price
£2,000,000
£2,000,000
£2,000,000
£2,560,169
£2,560,169
£2,560,169
28%
30%
35%
Deferred Fee
£716,847
£768,051
£896,059
Total Membership Fee
£229,793
£191,397
£95,699
Resale Price
Deferred Fee %
This worked example assumes a 10 year stay and apartment values (HPI) increasing 2.5% per year. For Option 1, it also
assumes a 4% increase in line with in昀氀ation each year (i.e. the cap is triggered each year)
The worked examples are illustrative only and include hypothetical assumptions which are not guaranteed and should
not be relied on. No representations are made as to the reasonableness of any assumptions in these worked examples.
