Investment Opportunities

Lodge Costs

LNHL will take care of the site management, maintenance and security, all of which are covered for within the site fees
The site fees, set at a very competitive rate of £2,500pa, included for all business rates; there is no Council Tax to pay
LNHL will take care of all aspects of renting your lodge for you for a competitive fee of 20%, which covers for advertising, bookings, payment collection, meet & greet, cleaning after rental, etc. thereby giving you a "hands off" investment
All rentals must be managed through LNHL to maintain standards and returns for all.
Rentals will be allocated on a rota system, except where the leads come directly from the owner, which allows you to maximise income.

Years 1 & 2 = 6% gross return (min value)/£185,ooo cost
- £11,1oo gross - £2,500 Site Fees - £2,553(Management Fee inc. VAT) = £6,047 / 6% gross / 3.3% Net

Year 3 = 23 weeks rental assumed
- £20,900 - £2,500 - £4,807 (Management Feeinc. VAT) = £13, 593 / 11.3%. gross / 7.4% Net

Year 4 = 28 weeks rental assumed
- £24,500 - £2,500 - £5,635(Management Fee inc. VAT) = £16,365 / 13.2% gross / 8.9% Net

Year 5 Ongoing = 32 weeks rental assumed
- £29,000 - £2,500 - £6,808(Management Fee inc. VAT) = £20,292 / 16% gross / 11.0% Net

The following examples show the robustness of the LNHL business model. Break even assumed to be a return of 6% (mortgages interest rate / opportunity cost of money)

1. Rented for 23 Weeks
- 23 weeks rental to return 6%/£11,100
- £11,100/23 = £480 per week rental required (equivalent to £17 per night per person!)
- Anticipated average rental = £8-900 per week (require only circa 14 weeks to break even)

2. Average Rental reduced to £700 pw
- £700 per week average rental to return £11,100
- £11,100 / £700 = 16 weeks (Highlands Self Catering average occupancy 31 weeks so only require 50% of this)

See below for potential risks and the mitigations that we believe minimise these risks

Development Folds - Mitigations
- Site in existence successfully for 40 years
- Ongoing successful business with 10 lodges alread sold / strong balance sheet & cash flows within the business
- Development funds in place / no borrowings required
- Development by current Management who will remain as owners/operators and live on site
- Knight Frank are selling agents
- Lodges are owned outright and can be relocated.

Lack of Bookings- Mitigations
- Strong historical data (see Business Plan)
- World renknowned and world class site; propsed 'World Heritage' status plus top of 'Seven wonders of Britain' poll (source VisitBritain)
- Self Catering beating the credit crunch (source H. & I.E.)
- Self Catering Highland occupancy average 31 weeks / 60% (source VisitScotland); LNHL projections based on circa 32 weeks maximum
- Quality development well above the average
- Weakness of Sterling a boost for overseas market
- 11.6m bednights in the Highlands with £658m spent (2007, VisitScotland)
- 6 of 10 top Highland visitor attractions within 45 minutes
- VisitScotland committed to growing tourism by 50% by 2015
- Excellent, well hit web sites and targeted advertising: leading travel sites, national publications, tourist bodies, Google 'Pay Per Click', etc
- Nessie.............(no amount of money can buy what this name brings)
- 6% minimum return guarantee for first 2 years.

World renowned and world class site; absolutely stunning!
Proposed 'World Heritage' status plus top of 'Seven wonders of Britain' poll (source VisitBritain)
Top of the range hard wearing, luxury lodges
Guaranteed minimum returns available with personal use
UK holidays, especially self catering, beating credit crunch
Excellent anticipated ongoing net returns of circa 10%
Strong history in an existing successful business so 'hit the ground running'
'Low Maintenance' investment preferable to BTL as all elements taken care of by LNHL and returns likely to exceed almost all BTL, plus there is a potential 20 weeks personal usage
- Issues with BTL: Management Fee of 12.5-15%, landlord registration, gas and electricity certification annually, voids, advertising costs, running repairs, HMO licences, deposit guarantee scheme, letting agents, stamp duty, factoring costs, rogue tenants, etc.
No Stamp Duty payable
No hidden extras: the quoted price is all-inclusive
Developed by Owner/Operators
Check out the photographs...

Tax Advantages
- Qualify as a 'Furnished Holiday Let' therefore treated as a business trade for taxation purposes
- Reduced Capital Gains on disposal (Business Asset Roll-Over & Taper Relief)
- Capital Allowances, not Wear & Tear as per BTL
- Losses can be offset against all income and can be carried forward, unlike BTL
- The above are for guideline purposes only so please take your own counsel regards your own particular circumstances