J106402 RS All you need to know - The Bishops Avenue AW (4) - Flipbook - Page 30
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We set out below worked examples of how the Membership Fee and Deferred Fee
across the three “Value in Choice” fee structures would be calculated for a 2 bedroom
apartment:
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
£2,500,000
£2,500,000
£2,500,000
£3,200,211
£3,200,211
£3,200,211
28%
30%
35%
Deferred Fee
£896,059
£960,063
£1,120,074
Total Membership Fee
£296,551
£247,000
£123,500
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.
