Pension Investment - Harlequin Property??

snowflake25

harlequinproperty.co.uk
My father has been given this company as a possible investment using money from his pension. I'm wondering if anyone has heard anything about them? I'm a believer in when something is too good to be true and this seems so. He's been advised 30% deposit paid from pension fund as deposit, property is a golf resort being built in St Lucia, when the complex is complete you then receive 50% of rental income (of which 30% has to be paid back in to pension fund), the other 50% taken in mortgage + maintenance fees. You are given the option to sell when the complex is built with the assumption that the property price will have gone up in value or you can continue to invest?
Any thoughts appreciated.

Aegis

Their_website wrote:

Harlequin Property are not authorised and regulated by the financial services authority. Harlequin Property does not offer financial advice.

No protection if they go bust. No recourse to the compensation schemes if they turn out to be fraudulent. Avoid like the plague.

OxfordBlue

I have read through the good advice offered on this site - and tried (unsuccessfully) to find the long thread on Singing Pig. I can see it is something to avoid but you guessed it I am already involved and now pretty worried. I understand now that it is unprotected and therefore very risky but does this also mean they are fraudulent/ dodgy? I am in lots of trouble or just lots of risk of trouble...? IF yes any bright ideas what to do next?

Yours grateful for any advice and wishing I had know this site before investing.

Thank you

OB x

Wiggins1967

One word of warning hps their contract is so one sided you just as well donate your money too them especially if you have paid any of the deposits late they charge you 1% a day on all monies owed in some cases people have paid over 100 days late having to get monies together they say don't worry we are in no rush we won't be building your purchase for 20 years all though 3 years on contract ,and then when people ask for their money back because they have breached the contract by not building they then charge you late payment fees which in some cases is more than the original deposits my advice is to stick it in your bank and don't let the con men have it ......

getzls

Hi,I have a friend who has left Royal Mail and has his pension froze untill he is 60, he's 45 now. He said he seen an advert in his local paper and got in touch with this firm who said they could get him his pension early, as in a lump sum. Have looked on line but can't see any thing relating to pensions about this firm. They seem to deal in overseas property sales mostly. Any one, particularly Royal Mail ex employees know anything about this pension deal? Thank you.

CannySaver_2

Hi

There are a number of things going on here.

There is a slight contradictory element to your post in that if your friend wants to get his pension early there will be nothing left to invest as it will (may) have been paid to him, but either way avoid these schemes like the plague.

Unless your friend is seriously ill he or she cannot access their fund early. These schemes have been found to be illegal and are peddled by non regulated sales people who prey on people's economic woes.

Am I right in saying that the Royal Mail scheme is defined benefit? One of the IFAs here will be able to answer that, if so why would you want to give it up to invest in some dodgy property scheme like Harlequin? I've heard some very bad things about this scheme in particular and others in general. I was talking to one SIPP provider (I'm currently reviewing my arrangements) who have informed me that they have stopped their SIPPs investing in Harlequin because of breached covenants.

It might be dull but urge your friend to stick with the Royal Mail scheme, they won't regret it in retirement. If he or she is in any doubt then try and find anyone on here to suggest this is a good idea (except of course those agents employed by Harlequin and others to ramp their investments on boards like this).

The Canny Saver

getzls

Hi Canny. They are saying they can unfreeze his pension and give him a lump sum. He's left R.M. but won't get anything till he's 60. Think the way he is looking at it is better money now as who knows, he may not see 60. It dosen't involve buying anything from them.

Proxy

getzls wrote: »

Hi Canny. They are saying they can unfreeze his pension and give him a lump sum. He's left R.M. but won't get anything till he's 60. Think the way he is looking at it is better money now as who knows, he may not see 60. It dosen't involve buying anything from them.

I don't think you're quite understanding the point.

These schemes are illegal. Your friend may lose everything.

And if he does see 60, he's going to spend those days in poverty.

CannySaver_2

getzls wrote: »

Hi Canny. They are saying they can unfreeze his pension and give him a lump sum. He's left R.M. but won't get anything till he's 60. Think the way he is looking at it is better money now as who knows, he may not see 60. It dosen't involve buying anything from them.

He doesn't understand how good the Royal Mail scheme is then, I'd sell my gran to be a member of that scheme!

Why does he need the money now? What's so financial pressing?

And as other people have said, these schemes are illegal, don't listen to the smooth sales patter, the "legal opinion" they have taken etc.

The Canny Saver

Zelazny

I second what everyone else has said here - stay clear!

Final salary pensions are the gold standard. If you transfer benefits out, you're almost never able to get the same amount of pension elsewhere, regardless of anything else that's happening here. Under very specific circumstances (if you're single and have health issues) you might be able to match it.

getzls wrote: »

Hi Canny. They are saying they can unfreeze his pension and give him a lump sum. He's left R.M. but won't get anything till he's 60. Think the way he is looking at it is better money now as who knows, he may not see 60. It dosen't involve buying anything from them.

But it does - what they normally propose involves transferring the pension to them, so that they can "invest" it how they see fit. I read about one of these cases where the investments basically involved purchasing the property of the people who set the scheme up for about 10 times what it was worth. So if you transferred them a fund of £10k, you might wind up with investments worth £1k. Obviously they're making a big profit from this, and that's where they get the money to pay the lump sum, but they'd pay a tiny fraction (£1k-£2.5k from what I've seen).

So not only would your friend lose a considerable amount by transferring out of a final salary scheme, he'd then lose another 90%+ of his fund through dodgy investments.

He would get a lump sum - which is an unauthorised payment, so would have to be repaid and would be liable for a significant tax charge (40%+).

dunstonh

He said he seen an advert in his local paper and got in touch with this firm who said they could get him his pension early, as in a lump sum.

I'm surprised they are bold enough to place an advert in the paper about an illegal activity.

They seem to deal in overseas property sales mostly.

Most of the pension release scams do. One of the common scams is that they use the pension money to buy the property, often in spain, that belongs to them which has fallen in value. However, they sell it to the pension fund at an inflated price.

Think the way he is looking at it is better money now as who knows, he may not see 60.

1 in 5 men dont make 65. That means 4 in 5 do. Why does he favour the 1 in 5 odds and not the 4 in 5 odds?

It dosen't involve buying anything from them.

So, they take out adverts in a paper and promote an illegal scheme that they dont earn from. How charitable.