Making Financial Sense

Your Home, Your Way: Our New Purchase Fee Option

Auriens
31 May 2024
Introduction
We are proud to announce that we are introducing an additional purchase fee option designed to provide flexibility and maintain the exceptional quality of services at Auriens.

We understand that everybody’s situation is unique, which is why we have developed these two options—Option A and Option B—providing different combinations of Deferred Management Fee and Monthly Management Charge to suit your lifestyle and preferences. 

The Deferred Management Fee is calculated as a percentage of the sale price or open market value of  your apartment, if higher. At Auriens, we offer two options—Option A and Option B—providing different combinations of Deferred Management Fee and Monthly Management Charge to suit your lifestyle and preferences. 

What are the two options?

Option A is ‘higher and indexed Monthly Management Charge, lower Deferred Management Fee’ and will suit those who wish to maximise their returns on resale.

Option B is ‘lower and fixed Monthly Management Charge, higher Deferred Management Fee’ and will suit those who wish to minimise their annual charges and with cost certainty on their outgoings.

Both options ensure that Auriens covers all additional operating costs and capital contributions beyond the Monthly Management Charge, aligning our interests in maintaining the value of your investment.

Afternoon tea in the Library

What is the Monthly Management Charge?

The Monthly Management Charge (“MMC”) covers Energy Centre contribution, staffing, security, maintenance, and general operating costs. Additional care and other extra services are charged separately to you on a pay-as-you-go basis. Options A and B both require monthly payments. In Option A, the MMC (initially £20.00 per square foot) is indexed annually against the Retail Prices Index (RPI). In Option B, the MMC (£12.50 per square foot) remains fixed until there’s a change in qualifying occupants.

Please note, these MMC figures are subject to change on the 1st of January each year, these figures relate to 2024.

What is the Deferred Management Fee?

The Deferred Management Fee is a percentage of the sale price and is payable when your apartment is sold. The DMF ensures you and Auriens have a mutual interest in maintaining the long-term capital values of the properties in the community – and therefore in keeping the building and services maintained. Though it might just sound like another cost, a DMF is what enables you to enjoy all the amenities and facilities within the community. 

This fee works alongside the MMC to ensure any repairs and maintenance work can be taken care of, without the community having to worry about a lack of funds.

In Option A, the DMF accrues at an annual rate of 3% and is capped at 15% by the fifth year. While the annual accrual rate for the DMF in Option B is 5% with a cap of 25% by the fifth year.

Please see our Deferred Management Fee brochure for unique case studies to offer you clarity and guidance and to ultimately aid you in making informed choices that align with your financial preferences.

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