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

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

    For the purpose of clarity and consistency, MH Investments 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.

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

    No, all maintenance and repairs costs are covered by MH Investments until the end of the contract, after 6 years or 12 years depending on the term agreed.

    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.

  • 03. Can you confirm what expenses are covered by MH Investments?

    The following expenses will be covered by MH Investments:

    • Maintenance
    • Service
    • Utilities
    • Permits
    • Approvals
    • Land rates
    • Documentation
    • Unit transportation
    • Installation

  • 04. Why does the investor need to pay MH Investments 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.

  • 05. Is the tenancy contract direct with the local government authorities?

    Local Government Authorities will not lease mobile homes directly from individual parties, so, MH Investment’s management affiliates work collectively with Local Government Authorities. The Local Government Authorities pay rent to our managing agents, who deduct their fees and expenses and pay the agreed amount directly to you, the investor.

  • 06. 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.

  • 07. How are the Investors protected for their return?

    The investment is protected through the contractual agreement with MH Invetsments and the investor: which is a legally binding document. The contract clearly stipulates the fixed 6-year or 12-year return. MHI UK works transparently at all times and each Investor knows the location of their mobile home and which Local Government Authorities are involved. MHI UK practices an open policy for inspection of the Local Government Authorities’ paperwork: should the investor request this.

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

    In the highly unlikely event that MHI UK were to suffer a serious financial failure: the mobile home and tenant would be unaffected and the tenancy contract would be transferred from MHI UK 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’.

  • 9. How are financial risks to the investor reduced?

    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. MHI UK 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; MHI UK's affiliate management agent 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?

    Section 124 of the Housing and Planning Act 2016 specifies 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…”, meaning that they are unlikely to remove a contract that is in place.

    Again, in the highly unlikely event that this was to happen, the mobile home and tenant would be unaffected and the contract would be transferred from the managing agent to the investor, who will therefore still acquire the rent from the Council.

  • 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?

    The demand for housing provision for low-income government assisted tenants has continually increased.

    Should it ever occur, MH Investments would return the investment to the investor (subject to clause) as stipulated in the investment contract, and the Local Government Authorities would hold full responsibility in the reallocation of land provided for the mobile homes and tenants, including moving/transportation costs.

  • 12. What warranties does MH Investments provide for the mobile home?

    MH Investments provides a 12-year manufacturer, double glazing and window warranty for each mobile home. Appliances and fixtures are covered by a two-year warranty.

    In addition, the managing agent is responsible for the upkeep and maintenance of the units during the entire length of the 6-year investment contract, even in the absence of a warranty.

  • 13. Is a rent guarantee insurance policy available for the units?

    MH Investments 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. What about Taxes

    Tax calculations are at the discretion of the investor and their accountants based on their personal returns.

    Any advice provided by a representative of MH Investment’s agents or associates 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 investor’s contract.

    MH Investments 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.