1. Is income rent fixed for 6 years or will there be a yearly review?

As per the contract between the investor and MHSL Dubai: the investor is guaranteed a fixed monthly rent for a period of 6 years. There is no yearly rent review between MHSL Dubai and the Investor.

For the purpose of clarity and consistency MHSL Dubai provides the agreed fixed rental payments to the Investors for the entire 6-year period; this allows the Investor peace of mind and ease of financial planning. Placing the ownership of the home in the Investor’s name provides the individual with further benefit of the asset.

2. As the investor am I liable for maintenance and upkeep?

No, all maintenance and repairs costs are covered by MHSL Dubai until the end of the contract, after 6 years.

The factors within the macro business environment can also culminate in changes to the cost of materials and maintenance. Our marketing intelligence allows us to forecast and be agile to such changes. Any variance in our expenses will not affect the contractual agreement with the Investor or the rental income.

3. Can you confirm what expenses are covered by MHSL?

The following expenses will be covered by MHSL Dubai:

  • Maintenance
  • Service
  • Utilities
  • Permits
  • Approvals
  • Land rates
  • Documentation
  • Unit transportation
  • Installation
4. Why does the investor need to pay MHSL upfront in full for a mobile home?

The advance purchase of the mobile home contributes towards the total cost of production, including all operations concerning materials, assembly, transportation and siting, installation and labour. In order to increase economies of scale and acquire materials and products at a reasonable and discounted cost, we currently procure 6 units’ worth of materials on a bi-weekly basis. By increasing MHSL Dubai’s economies of scale and purchasing power; we are able to reduce costs to the investor.

5. Why is the rental contract will be between MHSL and the Local Government Authorities?

Local Government Authorities will not lease mobile homes directly from individual parties. To operate on behalf of the investor, MHSL Dubai works collectively with Local Government Authorities in respect to housing provisions; and provide individual contracts per units sited to the investor. The Local Government Authorities pay rent to MHSL Dubai, who will then deduct their fees and expenses, before repaying the remit of the contract to the investor.

6. Who holds the land lease for the sites of the mobile homes?

The land belongs to the Local Government Authorities and they hold the lease.

7. How are the Investors protected for their return?

The investment is protected through the contractual agreement with MHSL Dubai and the investor: which is a legally binding document. The contract clearly stipulates the fixed 6-year return. MHSL Dubai works transparently at all times and each Investor knows the location of their mobile home and which Local Government Authorities are involved. MHSL Dubai practice a open policy for inspection of the Local Government Authorities’ paperwork: should the investor request this.

8. What mitigation of financial risks to the investor are in effect?

In the highly unlikely event that MHSL Dubai were to suffer a serious financial failure: the mobile home and tenant would be unaffected and the tenancy contract would be transferred from MHSL Dubai to the investor (as per the investment contract) who would therefore acquire the rent directly from the Local Government Authorities. This is allowable for landlords by councils in the case of ‘extreme special circumstances’.

At the point of investment, the investor would be updated by the MHSL Dubai Relationship Manager, as well as bi-annually moving forward until the end of contract. The Relationship Manager would be available to any enquiries as to the status and location of those unit(s) provided through investment.

Were MHSL Dubai to ever default on monthly payments, they would be in breach of contract and liable under Contract Law and Liability Insurance (demonstration of liability insurance may be provided upon request).

9. What does MHSL Dubai mitigate financial risk through?

Quality assurance procedures in the supply chain (manufacturing, transportation and siting of units) to ensure that machinery, staff and materials are utilised to maximum efficiency. Continuous building of solid relationships and contractual agreements with the Local Government Authorities provide financial stability for the investor. MHSL Dubai is run in a financially secure position and only holds standard liabilities such as tax. As a limited company, there is no value (in the court of law) in the owners/directors providing a personal guarantee. As further security; MHSL Dubai and the tenant(s) sign mutually-agreed 6-year tenancy contracts.

10. What is the guarantee that the Local Government Authorities will renew the land/ mobile home tenancy contract every year?

In the highly unlikely event that this were to happen, the mobile home and tenant would be unaffected and the contract would be transferred from MHSL Dubai to the investor, who will therefore still acquire the rent from the Council.

Standard UK Local Government Authorities Practice entails the grant of contract(s) on a rolling year-to-year basis. The provision of accommodation to low income government assisted tenants is enshrined by UK Law and as long as the tenant is provided a home, there is no reason for the contracts to be terminated. Whilst Section 124 of the Housing and Planning Act 2016 removes the duty on local authorities under the Housing Act 2004 to assess the accommodation needs of the demographic of low income government assisted tenants (that MHSM caters for) in a area; it does specify that, “…Local Housing Authorities should consider the needs of people residing in or resorting to their district with respect to the provision of sites on which caravans can be stationed…”

11. If a tenancy contract is not renewed and the Local Government Authority asks for the site to be vacated: what happens to mobile home and who bears the costs?

Should it ever occur: MHSL Dubai would return the investment to the investor (subject to clause) as stipulated in the investment contract. Increasing demand for housing provision for low income government assisted tenants means that non-renewal has yet to be observed by MHSL Dubai.

Should this happen the Local Government Authorities would hold full responsibility in the reallocation of land provision for the mobile homes and tenants, including moving/transportation costs.

12. What warranties does MHSL Dubai provide for the mobile home?

MHSL Dubai  provide a 12-year manufacture, double glazing and window warranty for each mobile home. Appliances and fixtures are covered by a two-year warranty but it should be recalled that MHSM is responsible for the upkeep and maintenance of units during the 6-year investment contract.

13. Is insurance available for the units?

MHSL Dubai are able to provide a bespoke fully comprehensive insurance package for investors at £300.00 per year per unit. This is a bespoke insurance product that is not available to either the public or through any other insurance companies.

The investor will be offered the option to purchase the insurance product separate to investment at the start of every investment year (for renewal) or request a deduction of the cost of the insurance in the first yearly month’s contractual repayment.

14. Tax

Tax calculations are at the discretion of the investor and their accountants based on their personal returns and any advice provided by a representative of MHSL Dubai may only be a representation of their experience at the time of advice and not a representation of the tax circumstances of the investment for the lifetime of the investors contract.

MHSL Dubai would recommend that any tax queries relating to ownership and income derived from units is directed to the personal or corporate tax advisors of the investor as landlord for accurate answers.

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