Did you know that investors can place 2 – 10 Million pounds into the UK economy for a Tier 1 investment visa. This entitles them, a spouse and their children to relocate to the UK and enjoy the education system, the business development and the social offerings of the UK.
This is good news for businesses that are looking to attract finance, without giving up any equity. They do this by creating a corporate bond for 5 years and offering these investors 3-7% dividends in return for this investment cash flow. Many of our clients have benefited from this type of finance.
Many foreign nationals have been taken advantage of by investing with brokers who incorrectly invest the sums or place the wrong valuation on these investments. These errors are not always picked up until year 3 causing the investor tremendous anxiety and often the loss of their visa/status here in the UK. If done incorrectly often the brokers make money, but the investor is lucky to earn more than 3%.
Having seen how these things operate and having rescued clients in these predicaments we sourced a regulated, financial company to operate a platform, can offer security for the visa and actual earnings for the investor. A corporate bond structure laid out for 5 years offers immigration visa security and up to 6-8% returns which is secured with collateral for the investor’s security.
As a regulated law firm we monitor the process, we obtain regular reports and valuations and at the key dates ensure that the immigration letters are forthcoming and correct. We keep everyone updated on immigration rules and progress and ensure compliance and safety is afforded to the investors throughout this period. The potential down fall being faced is that despite offers from regulated entities, people are given the hard sales by unregulated brokers and become anxious that offers of this nature seem too good to be true.
In addition to Visa’s foreign nationals may also apply for passports from other jurisdictions for ease of travel or assisted residency purpose. If you make an investment in places like Granada or Malta for example you can be awarded citizenship, residency and a passport. We have identified how easy this process is for brokers to take commissions from the developers rather than offer independent advice on the best route for the applicant. The fees are so varied in the UK for people undertaking this work and yet local fees are set by the government and cannot be varied. As a regulated law firm we have acted as an agent securing these documents using local lawyers, whilst we review the escrow and investment agreements, with the lawyers, to be content that your investment is protected. Our fees our fixed fees for the administration, freedom to choose the development, commercial reviews and handling the local agreement. Any commissions would be declared and reduced from a client’s legal bill. This process is unregulated and open to abuse and we warn clients to do their homework before embarking on these applications.
We do not handle immigration, but monitor and instruct firms on behalf of our clients so we can quality assure the work and avoid these well-known issues. Our fees are taken from the investments so actually costs the client nothing. The purpose of this article is to inform businesses on a new means of attracting investment and warning investors to be wary and do their homework on who they trust to facilitate these initiatives.
For more information contact us…
0207 426 0382