The Freehold Income Trust
The principal objective of the Freehold Income Trust (“FIT”) is to provide a secure, stable investment through acquiring freehold ground rents which offer an attractive income stream and capital growth prospects. A ground rent is the payment made by the lessee of a property to the freeholder of that property. It represents the underlying freehold interest in a property which is subject to a lease for a period of time usually between 99 and 999 years.
In this way FIT obtains a ground rent and also usually receives commission for arranging the building insurance. FIT, therefore, should generate a relatively consistent income stream and aims to distribute a target gross income of 4.25%* per annum. Thus an investment in FIT should offer a lower level of volatility than is available from most forms of property investment.
FIT is a UK unregulated unit trust.
|