CEMETERY FAQs www.bluebellland.co.uk CEMETERY GENERAL Where is the site located Watercrofts Woods, Old London Road, TN14 7AE Who is the developer/Land Owner? Who is operating the Cemetery? Bluebell Cemetery Ltd What are the ongoing maintenance charges? No on-going maintenance charges. The operator is responsible for upkeep of the estate. Bluebell Cemetery Property Ltd How many plots are available in total? RESERVATION AND BUYING PROCESS The initial phase one release is 2,000 plots. The total number of plots on site is 10,000. How do I reserve a plot? Yes. All plots are sold freehold with clean title. All plots are registered with land registry. You should log onto www.bluebellland.co.uk and complete the online e-signature application form. Or you can download and complete and sign and scan to [email protected] Is there planning permission in place? What is the legal process? Are the plots freehold. Yes. All planning permissions have been granted on this site. What is the purchase price? £5450 per plot Do I get a discount? Yes. 20% of current market value (RICS value) until completion. Upon Completion and opening of the Cemetery the discount will reduce to 5%. Can I see a copy of the valuation? Yes this is available online at www.bluebellland.co.uk When is completion? Site clearing and construction will start in April 2015 with the Cemetery being open for business April 2016. What security is in place to make sure Bluebell build the site? There is a long stop completion date in place of May 2017. Should the site not be legally completed and a functional and operational cemetery by this stage the contract becomes invalid and purchasers can expect the return of their monies in full. How do I know Bluebell have the financial adequacy and are motivated to complete the estate? The build costs of the estate office and chapel are estimated at £500,000. The total value of the plots in phase one is over £10m. Once the estate is completed the remaining plots will be sold at only 5% below market value and this doesn’t factor in any growth in value between exchange and completion. The land was purchased with-out debt and the development company and land itself are free of any debt other legal charges. Once you have reserved your plot you will require to engage a solicitor to assist with the acquisition. We have engaged with Osbornes Solicitors (Details can be found on page 16 on the Offer Document)to provide you with conveyancing services. You can of course appoint your own solicitor. What deposit will I require? On exchange of contracts you will require a 90% deposit with the remaining 10% payable on Completion (April 2016) When is legal title registered? Title is registered in your name at Land Registry on Completion (estimated April 2016) What are the legal fees for purchasing? Osbornes has a fixed fee of £250 plus vat (per plot.) AFTER EXCHANGE What Information do I receive once I have exchange contracts? Osbornes (or your preferred solicitor) will confirm the exchange of contracts Will I receive anything from Bluebell? Yes we will send a welcome letter with confirmation of useful contact details. We will also send a regular quarterly construction update and any market news that may be relevant. CEMETERY Could I sell my plot on prior to completion? How do I sell the freehold site? Yes you could assign the contract on to another buyer at any time after completion. However you should note that there will still be plots available on the market at the price that you have paid. co.uk. If listing on the website you will be guided to an extent by what other plots are selling and leasing for. If a family opts for a freehold purchase then an initial one year lease will be entered into which can be transacted immediately, which can be converted into freehold at any time. This will likely take place after the burial. This will be transacted online and payment made in full for the freehold. Post burial the family will be notified of the need to engage a solicitor to finalise the sale. How will I do know when the site has legally completed? The developer solicitor will engage with your solicitor to confirm completion and the remainder of the funds will be required. How do I determine the price? LEASING OR SELLING THE FREEHOLD How can I sell my plot? Should you opt to exit via Cemetery Reservations then you will be guided by what other plots are selling for. It does however make sense for plot owners to maintain pricing levels. You are free to sell it on at any time. You can do this yourself or via an independently operated online reservations platform www.cemeteryreservations.co.uk How long would it take to lease/sell? If wish to sell it on myself how would I achieve this? Similarly to owning a buy to let property you can engage with local agents (funeral directors) and let them know your plot is available and communicate directly with the family wishing to reserve a plot. Funeral directors will put the family in touch with the cemetery. In this instance they will put in touch directly to finalise reservation and arrangements. This can be for either a lease or freehold sale. How does Cemetery Reservations Online work? This is a listing platform that provides families with a map of the estate and the available plots for reservation and will communicate plot owners with buyers. Families will be given access to the website to choose a plot online. It would be logical for any freehold price for sale to be higher than leasing (EROB). However If you sell your plot yourself this can be at a price determined by you. If you consider a total of 10,000 plots and an annual target of 1900 burials technically the site will be full within 6 years. If all the plots are available at the same time would this create downwards pressure on pricing? Yes and conversely if supply is limited then the opposite would occur and you would get upwards pressure on price. One of the selling points of Bluebell is the fact that it is a woodland burial site and that the plots are available with freehold title. Demand will remain so long as mortality occurs locally. What if more woodland burial sites come on to the market? This is charged at 7.5% (a vat) of any price achieved This would create more supply but with planning so difficult to obtain and the already huge shortage in supply we don’t feel this would affect pricing over the long term. How will the reservation process work? Would different plots attract different prices? How much does this cost? Once a plot is chosen the family will be given a choice of either a 50 year lease (EROB) or buying the freehold outright. If a lease is chosen then the EROB can be completed online by the family and payment is facilitated. What happens at the end of the lease? Normal operating procedures are that the owners are given an option to re-new. Should they not renew then you are free to re-lease in which case the plot is dug double depth If you wish to gain vacant possession then it is unclear from research and legally what would happen. We recommend a clean freehold sale to avoid any doubt. Yes quite possibly although it isn’t clear what the differentiators are and each family who may wish to reserve will of course have different preferences. Once I have leased/sold my plot what happens? After the reservation has taken place and lease/sale executed online there is nothing more for you to do. All funeral arrangements and burial dates will be managed between the family, funeral directors and Bluebell cemetery operator. CEMETERY RISKS TAXATION Pricing How is the lease revenue treated tax wise? Prices of any asset can go down as well as up. However in general the cost of burial plots, as is widely reported, should continue to increase over the medium to long term. Leasing a plot would be treated as Income for tax purposes. How is the freehold sale treated tax wise? This is an illiquid asset and you may not be able to sell/ lease your plot at the time you wish. An outright sale of the plot would be treated as a capital gain for tax purposes. However at present the capital gains tax allowance (2015) is £11,100 pa. Any gains made below this amount would not attract any tax Timing of Exit Are there any other on-going taxes applicable? If you wish to lease or sell your plot it is worth noting that the time it may take to achieve this will depend on the supply/demand at the time. You should consider that there will be approximately 10,000 plots on the estate and that it could take several years for all of the plots to be sold/reserved. No. Liquidity Construction Although the development area itself is relatively small proportionate to the overall value of the site, there is always a risk, however minimal, that the Cemetery infrastructure may be delayed. You should view this as long term hold which would always mitigate any delay in the opening of the estate. There is a long stop completion date of May 2017. Do I have to pay stamp duty on the purchase? No the purchase price of plots falls well below the current stamp duty threshold.
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