We offer investors a number of different ways to exit their investments and it can be very different for developments.
- The first method is the ability to exit using our resale market – We have set this up to ensure that the price you receive for your shares is as close to the current market value as possible. There is no guarantee that someone will be willing to buy your investment from you. In such a scenario your opportunity to exit is limited to option (3) below. So far on the platform we have seen that resale shares sell quickly and that the average time taken is better than our target of three weeks.
- Investors in a property are given control over the strategic decisions made about a property including the decision on whether to sell a property.
How it works:
Investors will be contacted via email using the address associated with that investor’s account and will be invited to vote. The question in this case will be whether to sell the property or not.
Investors will be given a reasonable amount of time to respond given the circumstances. If a response is not received by the end of the specified time period, the relevant investors are deemed to vote in favour. UOWN will send reminders at appropriate intervals.
A vote is passed by a 75% majority (by number of shares beneficially held).
Then we have Easy Exit. We are currently testing this feature on a single property. On Easy Exit properties UOWN guarantees to buy back your shares within X days. This gives peace of mind that you can exit your investment quickly and easily. For this service UOWN charges a 3% fee (e.g. If you own £100 worth of shares we will charge £3 and you recieve £97)
Depending on the success and feedback of this trial we may roll out the Easy Exit feature on all properties in the future - giving people two options to list their shares normally with no fee or to guarantee a quick Easy Exit for a 3% fee.
Selling Shares on the Resale Market
For each property we will open the resale market once all the funds have been raised, contracts have been exchanged, and the property has been revalued. We will aim to make a property available for resale as soon as possible after funding is complete. All investors will be informed via email when the resale market for a property is launched and they will be informed of the latest share price.
You can view your portfolio in the ‘Dashboard’ section of your account and any properties available for resale will have a ‘List shares for sale’ button (as shown above). You will then be directed to the Sell Shares page (as shown below), the current share price, the potential proceeds of your sale, and the expected total return from your shares from rent as well as capital appreciation or depreciation. Once you list your shares they will be shown to users on the properties page and as soon as they are sold your UOWN account will be credited with the sales proceeds.
Key Points about the resale market
- You will not be charged any fees to sell your shares. The buyer of the shares will be charged the normal 2% plus a 0.5% stamp duty charge.
- Shares are sold at the current share price valuation and are sold on a first come first served basis.
- The share prices are listed to 4 decimal places (a hundredth of a penny), but when you sell your shares we will round the transaction to the nearest penny.
- The share price will be updated once a quarter based on an independent surveyor’s report. For more information on how this is calculated please see our article about share valuations.
- To make things clear and transparent UOWN starts all share prices at £1.00, and this makes it really easy to track how the price changes after a property is listed on the platform.
- You will continue to earn rent on your shares until they have been bought by another user. Your last rent payment will account for rental earnings up to the point of sale, so you will not miss out if your shares are sold halfway through a month.
- Your shares may be sold all at once, or in several small chunks. We aim to sell your shares within three weeks, but there is no guaranteed timescale - you will have to wait until there is a buyer for your shares, and be aware of the possibility that no buyer may be found for your shares.