www.wslaw.co.uk

Louise Leaver, Finance PartnerNikki Lynds-Xavier, Housing Management Partner

Winckworth Sherwood LLP

LEGAL ASPECTS OF DIVERSIFYING

• What is PRS?• Structure • Funding• Design requirements• Tenancy agreements• Management considerations

Introduction

• Read your loan agreements

• Charity law restrictions– Charitable activity– Charitable investment

• Regulatory restrictions/tax implications

Structure - considerations

• Type of entity

• Intra-group support– Lending– Investment

• Consent of lenders

Structure – commercial subsidiary

• Joint ventures– Restrictions under existing loan documents– Exit strategies– Control

• Sale and operating lease– Not a funding arrangement– Investor ends up with portfolio of assets

Structure - alternatives

• Depends on structure

• Can you use existing facilities?– purpose– security s172

• Development finance or institutional investment

Funding

• Loyalty

• Flexibility

• Benefits

• Communal facilities

Branding

• Fixtures and Fittings

• Quality

• Wifi

• Personalisation

Standards

• Length of fixed term

• Compatibility with other tenancies and head lease

• Flexibility

• Housing benefit

Tenancy Agreements

• Car parking

• Bikes

• Storage

• Services– Laundry– Cleaning– Dog walking

Service Agreements

• Specialist managing agents

• Separate management teams

• Dual role management teams

• Breaches

• Enforcement

Management

Stratford Halo

Thank You

Louise LeaverFinance Partnerlleaver@wslaw.co.uk020 7593 5050

Nikki Lynds-XavierHousing Management Partnernlx@wslaw.co.uk020 7593 5003

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DX 156810 London Bridge 6T. 020 7593 5000F. 020 7593 5099www.wslaw.co.uk