Investment opportunity?

dunstonh

Hook, line and sinker...

Like mentioned above, I struggle to see how the assets can be ringfenced. That would require an arrangement where they are not the owner of the assets. However, they say they are.

Non-regulated schemes can get away with saying all sorts of things that regulated schemes cannot. If this was a regulated scheme, then they would be looking at fines and other censure.

I wouldnt go near it. Advertising is suspect, guarantees are weak and self promoting on this thread as well is always a sign of a dodgy company (as in methods used).

JaneRichardson

Ooooh you're a suspicious lot aren't you! My connection is that I have written articles and made blog posts for other websites, promoting their motorhome hire, not Motorholme directly, that's how I got to know them. I'm not going to say anything other than that

fg22

dunstonh wrote: »

Like mentioned above, I struggle to see how the assets can be ringfenced. That would require an arrangement where they are not the owner of the assets. However, they say they are.

Why can't the investment be secured against the motorhomes? Secured loans aren't unusual, for example, you're still the owner of your house but the bank has a claim on the property prior to any unsecured creditors.

I do agree that this investment is likely to be risky though.

JaneRichardson

Credit-Crunched wrote: »

Thanks Jane, luckily you have arrived on Money Saving Expert just in time to post a nice positive review on your investment plans that contradict those of the financial advisor on this page.

Welcome and I look forward to your long and dedicated postings on this forum.

:rotfl:

p.s any connection to this company Jane?

Of course, as I say, I write articles for blogs that promote Motorholme's motorhome hire. If I was just going to spam this forum I'd have used a random name, not my own.

dunstonh

fg22 wrote: »

Why can't the investment be secured against the motorhomes? Secured loans aren't unusual, for example, you're still the owner of your house but the bank has a claim on the property prior to any unsecured creditors.

I do agree that this investment is likely to be risky though.

The link says they use a debenture. A debenture is not secured against an asset.
quote from site and I have highlighted the key part:

First of all, you receive £300 return on your £35,000 investment – paid directly into your bank account every month. Your investment is treated as a loan to our company – and it’s secured by a mortgage over a new motorhome. We use your investment or loan to buy a new motorhome. You have a mortgage over this motorhome, which is lodged with Companies House as a debenture.

There is the possibility that a charge could be made on the motorhome and the site does indicate that is the case. However, a motorhome is an asset that depreciates in value. So, the risk of capital loss does exist as your debt is secured on an asset with a declining value and one which is lower than the level of debt.

JaneRichardson

dunstonh wrote: »

The link says they use a debenture. A debenture is not secured against an asset.

I must admit that I looked at the definition of Debenture on Wikipedia, read it several times and I'm still not clear exactly what it means - If anyone can elaborate, I'm all ears.
Andrew Hughes (The Boss) has done quite a few videos on YouTube talking about this investment plan. Some of the interviews are with people who are already in the 'buy to let motorhome' scheme (which is obviously much less risky), so I guess they are already happy with the company.
As I said in my first post, I have known the company for some years (as a writer/blogger) - so I'm probably not the best one to comment, so I won't.

ktk

I would be interested in hearing from anyone who has really invested in this company.

fg22

In the UK a debenture usually refers to a secured debt. A debenture secured against an asset has to be registered with Company's House so that other creditors are aware of priority on insolvency.

fg22

JaneRichardson wrote: »

I must admit that I looked at the definition of Debenture on Wikipedia, read it several times and I'm still not clear exactly what it means - If anyone can elaborate, I'm all ears.

The wikipedia article on UK insolvency law may be more useful for a UK perspective.

dunstonh

whether it is secured directly or indirectly doesnt really change the position. It is still using an asset that is depreciating in value and will be lower than the debt.