Kensington - All you need to know - Flipbook - Page 30
Costs
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Option 3:
• Membership Fee: Half-price and fixed “for-life” and won’t change during your period
of ownership
• Deferred Fee: 7% per year (capped at 35%) calculated against the sale price
achieved or open market value, if greater, when you sell your apartment
This option might be attractive to buyers focused on keeping their Membership Fee
as low as possible, be that for affordability reasons or in anticipation of future care
costs. Equally, they might simply prefer to enjoy the benefits of living at Riverstone at a
significantly lower annual cost and don’t mind if they (or their representatives) have to
pay a higher Deferred Fee amount after living at Riverstone.
We set out below worked examples of how the Membership Fee and Deferred Fee
across the three “Value in Choice” fee structures would be calculated for a 2 bedroom
apartment for a hypothetical 10-year stay:
Option 1
Deferred Fee %
Option 2
Option 3
4% per year
6% per year
7% per year
(capped at 28%) (capped at 30%) (capped at 35%)
Membership Fee Type
Index-Linked
Fixed for Life
Half Price &
Fixed for Life
Resale Price
£1,500,000
£1,500,000
£1,500,000
28%
30%
35%
Deferred Fee
£420,000
£450,000
£525,000
Membership Fee over 10 years
£241,287
£200,970
£100,485
Total combined fees payable
£661,287
£650,970
£625,485
Deferred Fee %
