Soft Nominations AgreementOctober 8, 2021 2:30 pm
“Even main street lenders lend to student residences backed by an appointment agreement,” says Jonathan Fewster. Jonathan Fewster, a partner at Bircham Dyson Bell LLP, believes that student residences focus their attention on investors because they can be backed up by university appointment agreements that put the risk on the institution and not on the investor. The return at Direct Lets (excluding university agreement) is estimated at around 5% in London and slightly higher in major cities outside the capital, including Bristol, Manchester and Birmingham. Several models are available, ranging from simple “flexible” appointment agreements, with no financial obligation, to full long-term repair and lease agreements, which could include the transfer of ownership of the building to the university at the end of the semester.